- GBP/USD trades above 1.2900 down 0.13%, approaching key support at 1.2860.
- Bearish momentum observed as RSI slope turns downward, indicating potential further declines.
- Key support levels: 1.2860 (June 12 high) and 1.2779 (July 10 low), with further downside toward the 100-DMA at 1.2678.
The Pound Sterling extended its losses during the North American session against the US Dollar on Tuesday, clinging to the 1.2900 figure after hitting a 7-day high of 1.2887. Traders eye the next key support level of 1.2860. At the time of writing, the GBP/USD trades at 1.2914, down 0.13%.
GBP/USD Price Analysis: Technical outlook
After a five-day consolidation that witnessed the GBP/USD hitting a yearly peak of 1.3044, followed by a tall bearish candle that sent the pair drifting from around 1.3000s toward the 1.2940 mark before tumbling deeper, toward the 1.2900 figure.
Momentum, as depicted by the Relative Strength Index (RSI), remains bullish, but in the near term, sellers have moved in, as the RSI slope aims downwards.
Therefore, the GBP/USD could continue to edge lower, but first, market participants need to push the exchange rate below 1.2900. In that outcome, the next support could be the June 12 high at 1.2860, followed by July 10 low at 1.2779. A further downside is seen at the 100-day moving average (DMA) at 1.2678.
