GBP/USD slips below the 50-DMA, signaling a bearish shift despite its recent recovery towards 1.3000.
Bearish momentum in the RSI hints at a deeper correction if the pair closes below 1.3000 consecutively.
Key support levels include the 100-DMA at 1.2954 and the bottom of the ascending channel around 1.2890/1.2910.
The Pound Sterling recovered some ground yet cannot hold firm above the 1.3000 figure against the Greenback. Absent data releases in the UK kept traders adrift to a goodish US Retail Sales report, along with a dip in unemployment claims. At the time of writing, the GBP/USD trades at 1.2991, virtually unchanged.
GBP/USD Price Forecast: Technical outlook
Price action suggests the GBP/USD is still upwardly biased, but since it has fallen below the 50-day moving average, it has opened the door for lower prices.
From a momentum standpoint, the Relative Strength Index (RSI) is bearish. Hence, if the GBP/USD achieves back-to-back daily closes below 1.3000, it could be headed for a deeper pullback.
Given the backdrop, the first support for GBP/USD would be the 100-DMA at 1.2954. Once cleared, the next support would be the bottom trendline of an ascending channel at around 1.2890/1.2910, followed by the June 12 peak turned support at 1.2861. The next support would be the 200-DMA at 1.2794.
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