Gbpusd Hovers At Lows

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Gbpusd Hovers At Lows

Gbp/Usd Hovers At 1.2520, Traders Await Uk Pmi

The GBP/USD continues its descent for the 3rd day in a row. The pair has lost 0.47% of its value after the release of the UK Flash PMI along with the Retail Sales data. Both of these data releases from the UK were disappointing and led to the decline of the GBP against the USD.

Gbp/Usd To Find Support At 1.2500

Amidst all of this, geopolitical tensions are also high due to the Russia-Ukraine conflict, which is also helpful for the USD. Right now, GBP/USD is trading near 1.2529 and is below the daily high established at 1.2594.

The overall market mood has turned positive, which has capped the USD advance for now. Despite this, the GBP/USD is still under pressure, and the upcoming economic releases will remain in focus.

Up ahead, the speech of BoE's Clare Lombardelli is due. After that, the CBI Distributive Trades will be released which is also a key economic release. Some more economic releases that are due include the Financial Stability Report, Nationwide Housing Prices, and Car Production.

The technical analysis of GBP/USD shows that the bearish trend remains dominant. Now, the next key level is the 1.2445 support, which is the low from 9th May. Once this support is lost, the next YTD low for the GBP/USD is 1.2299.

Meanwhile, the RSI indicator is now in the oversold area and is below the 30 level. That's a sign that GBP is oversold and could soon stage a recovery against the US Dollar.

However, the RSI is still not at extreme levels, which means the downtrend could continue in the short term for a while. But once the RSI reaches 20, the risk of an uptrend in GBP/USD will increase manifolds.

If the bulls manage to close above the 1.2600 on the D1 chart, the next stop for the bulls will be a1.2714. Beyond that, the 1.2818 is also important as that's where the 200 SMA is present.

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