GBP/USD trades losses of more than 0.10% during Powell's Senate appearance.
‘Shooting star’ pattern hints at further downside if July 8 low of 1.2785 is breached.
Key support levels at 1.2750/75 and 1.2709, while resistance lies at 1.2845 and 1.2860.
The GBP/USD falls during the North American session as Federal Reserve Chairman Jerome Powell appears at the US Senate Banking Committee. At the time of writing, the pair trades with minimal losses of 0.10%, just below the 1.2800 figure.
GBP/USD Price Analysis: Technical outlook
The GBP/USD uptrend remains intact, but the formation of a ‘shooting star’ on Monday’s price action hints that the pair could aim lower if spot prices tumble below the July 8 low of 1.2785.
Momentum, as measured by the Relative Strength Index (RSI), favors buyers, but they are losing steam as the RSI’s slope aims slightly downward.
Short-term, if GBP/USD achieves a daily close beneath the July 8 low, an ‘evening star’ three-candle bearish chart pattern would emerge, opening the door for further losses. In that outcome, the pair’s first support would be the confluence of two support trends at around 1.2750/75. Once cleared, the Pound Sterling could drop towards April’s 9 high at 1.2709 before challenging 1.2700.
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