GBP/USD hits a new five-week low of 1.2672 before rebounding above 1.2700.
Technical outlook: Bearish momentum with first support at 1.2700, followed by 100-DMA at 1.2683 and 200-DMA at 1.2648.
For bullish reversal, GBP/USD needs to surpass 50-DMA at 1.2783, targeting 1.2800 and 1.2900.
On Tuesday, the Pound Sterling prolonged its agony and extended its losses against the Greenback. Although sentiment has improved following Monday's stock riot, the buck remains bid, as shown by the GBP/USD pair, which trades at 1.2709, down by 0.49%.
GBP/USD Price Forecast: Technical outlook
During the trading session, the GBP/USD tested the 100-day moving average (DMA) At 1.2683 and dipped to a new five-week low of 1.2672, but buyers emerged and lifted the exchange rate above 1.2700. Despite this, momentum favors sellers, as depicted in the Relative Strength Index (RSI), standing bearish.
With the path of least resistance being tilted to the downside, the GBP/USD first support would be 1.2700. Once surpassed, the pair will test the 100-DMA at 1.2683, followed by the 200-DMA at 1.2648. On further weakness, the pair could challenge the 1.2600 figure.
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