GBP/USD breaches 200-day SMA, turning bearish with potential to test support at 1.2700.
Mixed labor data and technical indicators suggest further downside risk for the Pound.
Recovery above 1.2800 needed for bullish resumption, with 1.2900 and 1.2993 as key targets.
The Pound Sterling plummets more than 0.60% on Tuesday, after labor market data was mixed, with the Unemployment Rate rising sharply, as the economy added over 220K jobs to the economy, 150K less than in the previous reading. At the time of writing, the GBP/USD trades at 1.2792, below the 1.2800 handle for the first time since mid-August 2024.
GBP/USD Price Forecast: Technical outlook
The GBP/USD plunged below the 200-day Simple Moving Average (SMA) of 1.2817. A daily close confirmation would turn the pair bearish, and it might open the door to test the next intermediate support at the 1.2700 figure, followed by major support at August 8 swing low of 1.2664.
For a bullish continuation, buyers must regain 1.2800 and lift the spot prices above the 1.2833/43 are, support levels hit on November 6 and October 31, respectively, before testing 1.2900. Up next would be the 100-day SMA at 1.2993.
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