GBP/USD retreats by over 0.55% on Tuesday amid political turmoil in the UK, as pressure mounts on Prime Minister Keir Starmer to step aside following cabinet resignations. Technically, the formation of a ‘dark-cloud cover’ suggests further downside if sellers drive the pair below 1.3500.
GBP/USD Price Forecast: Technical outlook
After consolidating around 1.3600, political pressure pushed GBP/USD lower. The Relative Strength Index (RSI) shows that sellers are gaining momentum, as it points downwards, indicating a potential bearish turn.
For a bearish continuation, sellers must keep GBP/USD below 1.3500. In that outcome, the next support would be the 100-day Simple Moving Average (SMA) at 1.3482, followed by the confluence of the 50- and 200-day SMA near 1.3427/25. On further weakness, the next area of interest would be the 1.3400 mark.
On the flip side, bulls must climb above 1.3550 to challenge the 1.3600 milestone. Above this level, the next area of interest would be the May 8 daily high at 1.3637, followed by key resistance levels 1.3650 and 1.3700.
GBP/USD Price Chart – Daily
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