Early during the North American session, the British Pound dropped against the Greenback after data from the United States showed that business activity was picking up.
GBP/USD slides 0.04%, peaking at 1.2746 in early North American trading. Technicals show a bearish trend with a 'shooting star' pattern and momentum with sellers. Support on May 21 low of 1.2686, May 16 low of 1.2643, and 1.2600 psychological level. Resistance at 50-hour SMA , 100-hour SMA , weekly high of 1.2761; potential target at 1.2800. Alongside that, inflationary pressures rose, sparking investors' fears that the Fed would delay cutting rates later during the year.
However, momentum supports sellers, as shown by the Relative Strength Index , which remains bearish and hovers at its lowest level since May 17. Therefore, if the major drops beneath 1.2700, the next support would be the May 21 low of 1.2686, followed by the May 16 low of 1.2643 and the psychological 1.2600 mark. Conversely, if buyers lift the exchange rate above 1.2746, that will sponsor a test of the weekly high of 1.2761. Further strength and the pair could aim for 1.2800.
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