• GBP/USD retreats 1.70% from YTD high of 1.3043, trading at 1.2826.
• Technical outlook shows bearish momentum, with key support at 1.2800 and potential further losses to 1.2612-1.2622 area.
• Buyers need to push past 1.2893 to challenge 1.2900 and higher resistance levels.

The GBP/USD begins the week on the back foot ahead of the Bank of England’s monetary policy decision on August 1. Market participants seem convinced that the BoE would cut interest rates, yet the odds are around 59%. The pair trades at 1.2826, down 0.28%

GBP/USD Price Analysis: Technical outlook

The GBP/USD extended its losses after hitting a year-to-date (YTD) high of 1.3043, retreating some 1.70%, clearing some support levels. However, further losses beneath 1.2800 could drive the price toward the confluence of the June 27 cycle low and the 200-day moving average (DMA) at around the 1.2612-1.2622 area.

Momentum shows sellers are in charge, as depicted in the Relative Strength Index (RSI), turning bearish, with a downward slope and under the 50-neutral line.

Therefore, the first support for GBP/USD would be the 1.2800 mark, followed by the 50-DMA at 1.2778. Once cleared, the next stop would be the 100-DMA at 1.2681, followed by the aforementioned area.