GBP/USD Bears Seize Control Below 200-DMA; Targets Shift to 1.2703 and 1.2560
Technical Analysis:
GBP/USD experienced a significant bearish breakout on Monday, decisively breaking through critical support at the 200-day moving average (DMA) at 1.2812 and subsequently extending losses to an intraday low of 1.2713. This breakdown marks a notable shift in the technical landscape, indicating that bearish sentiment has firmly taken hold as ongoing tariff uncertainties and global growth worries escalate. Sterling’s substantial retreat, now exceeding four big figures from the April 3 high of 1.3207, underscores heightened market anxiety and the severity of the recent risk-off environment.
Immediate downside technical levels come clearly into focus following this bearish breach. Support at Monday’s low of 1.2713 now provides an initial barrier against deeper losses, but stronger support awaits at the rising 55-DMA at 1.2703. Given the decisive break of the 200-DMA, momentum indicators such as the daily RSI, currently descending sharply, confirm intensified bearish pressure. A close beneath 1.2703 would further solidify the bearish bias, opening the door to deeper declines toward the February 28 low at 1.2560—a critical level marking the year’s earlier base.
On the upside, the former support at the 200-DMA near 1.2812 now serves as significant technical resistance, with interim resistance levels appearing at the falling 10-hour moving average (HMA) around 1.2786. Beyond this, the session high at 1.2933 forms a key pivot point that must be reclaimed by bulls to signal a meaningful recovery. Until tariff-related uncertainty eases and markets stabilize, any rallies in GBP/USD are likely to be viewed as corrective moves, presenting opportunities for bears to re-establish short positions near key resistance zones.