The British Pound is off to a weak start, dropping over 0.3% against the US Dollar (USD) due to growing concerns about potential tariffs under President-elect Donald Trump. This has reduced risk appetite, pushing the GBP/USD pair below 1.2900, currently trading at 1.2876.
Technical Outlook for GBP/USD
Technically, GBP/USD is in a consolidative but slightly bearish pattern. Key support lies at the November 6 low of 1.2833, followed by the 200-day Simple Moving Average (SMA) at 1.2816. Breaking below these levels would reinforce a bearish outlook, potentially targeting the August 9 low of 1.2664.
For GBP bulls, the next challenge is to rise above the 100-day SMA at 1.2992, with a move beyond that opening the path toward the 50-day SMA at 1.3099. Momentum indicators like the Relative Strength Index (RSI) point to a bearish bias but suggest sellers aren’t fully in control yet.
