The Is Solana a buy hold or sell?Pound Sterling retreats toward 1.2910 against the Greenback in Monday's European trading session
Technical setup remains bearish below 100-day EMA with RSI confirming downward pressure
Critical support zone forms near 1.2875 while resistance clusters around 1.2983-1.3000 area
The GBP/USD exchange rate continues its downward trajectory, hovering near 1.2910 during early European hours on Monday. The US Dollar maintains its strength following recent political developments, creating headwinds for the currency pair. Market participants anticipate that potential inflationary pressures may influence the Federal Reserve's rate trajectory differently than previously expected.
Across the Atlantic, the Bank of England maintains its cautious stance regarding monetary policy adjustments. Officials emphasize the necessity of maintaining restrictive policies for an extended period to ensure economic stability. This position could potentially provide some support for Sterling in the coming sessions, though the overall technical picture currently favors the US Dollar.
From a technical perspective, the daily chart reveals several bearish signals for GBP/USD. The pair consistently trades below the significant 100-day Exponential Moving Average, while the 14-day Relative Strength Index remains positioned in bearish territory around 43.85. These indicators collectively suggest that downward pressure persists in the near term.
Key support levels to monitor include the November 7 low at 1.2875, followed by the 1.2850-1.2840 range which coincides with technical indicators and previous price action. Should the pair attempt recovery, immediate resistance appears at the 100-day EMA near 1.2983, with psychological resistance forming at the 1.3000 handle. A sustained break above this zone could potentially open the path toward November 6 highs around 1.3048.
GBP/USD Technical Outlook
The currency pair's technical configuration continues to reflect bearish dominance, with multiple indicators aligning to suggest potential further downside. Traders should closely monitor price action around identified support and resistance levels for potential trading opportunities in the coming sessions.
