Extends losses below 1.3100 on BoE dovish stance

• GBP/USD is down 0.26% at 1.3076 after peaking at 1.3134, driven by dovish remarks from the BoE and rising US Treasury yields.
• Bearish RSI indicates seller dominance; key supports are at the 50-DMA of 1.3077, 1.3031 and 1.3001.
• Resistance lies at 1.3100, with additional targets at 1.3134 and the October 4 high of 1.3174.

Sterling extends losses against the greenback in early trade during the North American session, down 0.26%. Dovish comments from Bank of England (BoE) Governor Andrew Bailey started Sterling’s slide last week. Hence, GBP/USD is trading at 1.3076 after reaching a daily high of 1.3134.

GBP/USD Price: Technical Insights

During the overnight session for US traders, GBP/USD touched a three-week low of 1.3058 before recovering ground. Rising US Treasury yields supported the greenback, which climbed to a 7-week high above 102.00 but remains shy of 103.00.

The Relative Strength Index (RSI) shows signs that sellers are in charge after the bearish shift. Given the context, the path of least resistance for the pound is sloping down.

The first support for GBP/USD would be the 50-day moving average (DMA) at 1.3077. On further weakness, the next support would be the September 12 low of 1.3031, followed by the latest low of 1.3001, the lowest since September 11.

Conversely, if the pair climbs above 1.3100, look for a retest of the day’s high of 1.3134 ahead of a challenge of 1.3150. Next will be the October 4 top at 1.3174 before 1.3200.

GBP/USD Price Action – Daily Chart