GBP/USD Price Analysis: Drops below 200-DMA, at cross-roads to resume downtrend

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GBP/USD Price Analysis: Drops below 200-DMA, at cross-roads to resume downtrend
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The Pound Sterling reverses its course against the US Dollar, after extending its gains past the 200-day moving average (DMA).

GBP/USD declines 0.36% from its daily peak, under pressure from indications of rising US inflation. The pair struggles above the 200-day moving average at 1.2564, hinting at potential further declines. Support levels are seen at: November 14, 2023, high of 1.2506; breaching this could lead to further support tests at 1.2448 and the year-to-date low of 1.2299. A recovery above the 200-DMA could reignite bullish momentum, aiming for 1.

2564 might open the door for a pullback, with traders eyeing a test of the November 14, 2023, high at 1.2506. In the event of a drop below that level, further downside is seen at the April 26 intermediate support at 1.2448, before the major plunges to the year-to-date low of 1.2299. On the other hand, if the pair edges above the 200-DMA that would pave the way for testing 1.2600. Once surpassed, key resistance levels emerge. The 50-DMA is up next at 1.2619, followed by the 100-DMA at 1.2645.

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