GBP/USD Price Analysis: Retreats from three-month high, drops below 1.2800

• GBP/USD retreats at technical confluence around 1.2800.
• Key support levels lie at 1.2694, 1.2635, and 1.2600.
• The GBP/USD could test a YTD high if buyers reclaim 1.2800.

The British Pound lost ground versus the US Dollar after hitting a three-month high of 1.2817 yet retreated below 1.2800 during the European session. Data from the United States showed the labor market is cooling yet keeping the Greenback in the driver’s seat. The GBP/USD trades at 1.2775, down 0.25%.

GBP/USD Price Analysis: Technical outlook

The daily chart portrays the pair as neutral-upward biased but struggling to clear the confluence of a downslope resistance trendline drawn from July highs, which passes at around 1.2800. Although momentum favors buyers, as shown by the Relative Strength Index (RSI), the RSI is aiming lower.

The GBP/USD first support would be the June 3 low of 1.2694. Once cleared, the next stop would be the 100-day moving average (DMA), which converges with the May 3 high at 1.2635, followed by the 1.2600 mark.

On the flip side, buyers reclaiming 1.2800 could sponsor a test of the year-to-date (YTD) high of 1.2893, followed by 1.2900.

GBP/USD Price Action – Daily Chart