GBP/USD Price Analysis: Subdued around 1.2700, with bears in charge pre-FOMC decision

• The Pound falls versus Dollar, awaiting Fed policy news.
• GBP/USD nears 50-day MA; further drops possible as bears target 1.2600.
• Break below 1.2700 may seek weekly lows, with rebound eyeing March highs.

The Pound Sterling drops some 0.12% against the US Dollar in early trading during the North American session as traders brace for the Federal Reserve’s monetary policy. A softer inflation report in the United Kingdom (UK) didn’t move the needle in the session, as the GBP/USD trades at 1.2706, with sellers hoping to push prices below the 1.2700 mark.

GBP/USD Price Analysis: Technical outlook

The daily chart portrays the pair as neutral biased; GBP/USD buyers leaned into the 50-day moving average (DMA) at 1.2685, the day’s low, but edged above the 1.2700 handles and hovered around that area. The Relative Strength Index (RSI) points downward below the 50-midline, indicating that selling pressure remains.

If the GBP/USD extends its losses below 1.2700, it will challenge the 50-DMA, followed by the current week’s low of 1.2667. A further downside is seen at the 100-DMA at 1.2619, ahead of the 1.2600 figure.

On the flip side, if buyers reclaim the March 18 high of 1.2746 and break a resistance trendline at around the 1.2745/55 area, expect a recovery toward the 1.2800 mark.

GBP/USD Price Action – Daily Chart