GBP/USD has lost the multi-day recovery path and has now fallen below 1.2800. The decline came in after the release of the UK consumer inflation number that showed a decline to 2.8% from the previous 2.9%. The pair is currently trading at 1.2790 with immediate support at 1.2767. Other supports are present at 1.2740 and 1.2715 levels. The intraday resistance is at 1.2835 another resistance is present at 1.2472 level.

The RSI has moved well below to the neutral zone and appears to be entering further in the bearish zone. The MACD is below zero line and supportive of the downwards momentum. The SMA-21 is indicating resistance at 1.3152 and the SMA-50 is now showing resistance at 1.2964. The price pattern is now strongly bearish and favors sell entries. An intraday sell entry would be at near 1.2800 level with a target of 50 to 60 pips.  A tight stop-loss would be just above the 1.2840 level.

 A weekly closing below 1.2800 would raise the possibilities of a further decline towards 1.2680 and 1.2650 in the next week. On the upside, only closing above 1.2900 would be supportive of the bulls.

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By LCMS Traders FX Analysis Team

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