Gbpusd Turns Bearish Due To Risk Off

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Gbpusd Turns Bearish Due To Risk Off

GBP/USD Turns Bearish Near 1.2600 Due To Risk-off

The GBP/USD is trading near 1.2620, which has also put the 1.26 support level at risk. Earlier, the pair faced tough resistance around the 1.2650 and eventually turned lower.

For now, the GBP/USD pair is experiencing a downside due to the risk-off mood in the market. This is driving up the demand for the US Dollar despite the drop in the US bond yields. Looking ahead, the data from the UK and the US side is due, which could alter the current trend in the Pound/Dollar pair.

On the 4-hour chart, the RSI indicator shows that the bullish momentum is almost gone. In addition, the nearest resistance is 1.2650, followed by the major resistance located at 1.2700. Next up is the static level, located at 1.2740, and then the psychological level, which is at 1.2800.

GBP/USD Next Support At 1.26 And 1.2560

The support levels that are located below the current trading price can be seen near 1.2600 and 1.2560. Once the 1.2600 handle is lost by the bulls, the GBP/USD bears will target the 1.2560 level next.

In the last 3 weeks, the GBP/USD pair stayed positive, but it appears that bullish momentum has finally faded in Monday's session. The bigger picture suggests that the bearish momentum is gaining traction, but any bigger drops in the GBP/USD are highly unlikely.

The reason for this is that the GBP/USD investors are still cautious and are not interested in going all-in, as the market dynamics could change at any time.

Although there are numerous data releases scheduled for the US and the UK, none of them are high-impact, which means the risk perception will be the main driving force for the GBP/USD in the next few days.

With the absence of any major data from the US and the UK, the market forces will be looking at other factors to dictate the next direction of GBP/USD.

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