Pound Sterling Retreats on Fading Momentum
The Pound Sterling (GBP) lost ground against the US Dollar (USD) on Friday, currently trading at 1.2541. This decline comes after the GBP/USD pair reached a three-week high but failed to hold above the 1.2600 resistance level.
Softer US Jobs Data Not Enough to Sustain Rally
- Initial optimism from a weaker-than-expected US Nonfarm Payrolls report faded.
- The GBP/USD's rally stalled as buyers lacked the strength to push prices higher.
Technical Analysis Points to Potential Downside
- The daily chart suggests a "shooting star" candlestick pattern, indicating a potential bearish reversal.
- The RSI is flattening, suggesting fading upside momentum.
- Support levels to watch include 1.2500, 1.2474, and 1.2400.
Resistance Levels for a Potential Rebound
- The 200-day moving average (DMA) at 1.2548 could act as initial resistance.
- Further resistance lies at 1.2600, followed by the 50- and 100-day DMAs.
Overall, the GBP/USD's near-term direction remains uncertain. A break below 1.2500 could signal a deeper pullback, while a break above 1.2600 might indicate renewed upside potential.