GBPUSD loses traction at 1.2123 as US Treasury yields climb.
During the early European session on Thursday, GBPUSD remained under selling pressure below the mid-1.2100s. A rise in US Treasury bond rates, as well as growing geopolitical tensions between Israel and Hamas, enhance US Dollar (USD) demand while putting some downward pressure on the Pound . The major currency is presently trading in 1.2123, down 0.14% on the day.
GBPUSD Technical Outlook
GBPUSD is trading below the 50-day moving average. And 100-hour Exponential Moving Averages (EMAs) on the four-hour chart, indicating that additional fall is likely. Furthermore, the Relative Strength Index (RSI) is now below 50, indicating that sellers are in control for the time being.
Any significant follow-through selling below the lower limit of the Bollinger Band of 1.2120 will result in a slide to 1.2052 (low of October 3) on the way to a low of 1.2037 on October 4. The next level of dispute will appear at a psychological round point of 1.2000, followed by 1.1965 (a February 16 low).
On the upside, GBPUSD faces immediate resistance at 1.2190. The important obstacle is at 1.2217, which is the intersection of the 100-hour EMA and the October 16 high. .
The upper border of the Bollinger Band at 1.2230 will be the next stop farther north. The extra upward filter to keep an eye on is at the October 10 high of 1.2295.
