Bears gather steam, push prices below 1.3100

• GBP/USD is consolidating in the 1.3060-1.3140 range, with sellers maintaining control after last week’s US jobs report boosted the greenback.
• The pair is biased to the downside after breaking below the 50-DMA, with key support at the September 11 low of 1.3001 and the 100-DMA at 1.2935.
• A break above 1.3100 could signal a reversal, with resistance at 1.3200, followed by the October 3 peak of 1.3269.

Sterling lost ground against the greenback on Wednesday as traders await minutes from the Federal Reserve’s latest meeting and US inflation data on Thursday. At the time of writing, GBP/USD is trading at 1.3070, 0.26% below its opening price.

GBP/USD Price: Technical Insights

GBP/USD has strengthened in the 1.3060-1.3140 range over the past three days. The lack of a catalyst is keeping market players on edge, although last week’s US jobs report boosted the greenback, which hit levels last seen in August 2024.

Momentum suggests that sellers are in charge as evidenced by the falling relative strength index (RSI) reading.

In the short term, the pair is biased to the downside. The drop below the 50-day moving average (DMA) at 1.3087 opened the door for further losses. However, if the sellers want to stay in charge, they need to drive the exchange rate to the September 11 low of 1.3001. If this level is broken, the 100-DMA at 1.2935 would be in play, followed by the 200-DMA at 1.2784.

Conversely, if GBP/USD recovers 1.3100 and rises above 1.3200, it would open the door for further upside. The next resistance would be the October 3 high at 1.3269, followed by the October 2 high at 1.3305.

GBP/USD Price Action – Daily Chart