GBP/USD Price Forecast: Bearish Bias Remains Unchanged Below 1.2700

The GBP/USD pair remains in positive territory for the second consecutive day, trading near 1.2690 during Wednesday’s early European session. However, the upside potential appears limited as expectations of a less aggressive interest rate cut by the US Federal Reserve and concerns over President-elect Donald Trump’s tariff policies lend support to the US Dollar. Investors are closely watching Federal Reserve Chair Jerome Powell’s speech for insights into the interest rate outlook.

From a technical perspective, the bearish bias for GBP/USD persists, with the pair holding below the critical 100-day Exponential Moving Average (EMA) on the daily chart. Additionally, the 14-day Relative Strength Index (RSI), hovering below the midline at 45.35, signals potential further downside.

Key support is located at the psychological level of 1.2600. A break below this level could expose the next target at 1.2467, the lower limit of the Bollinger Band, with further declines potentially testing 1.2331, the low from April 23.

On the upside, resistance is initially seen at 1.2750, the high from November 29. A sustained move above this level could pave the way for a rally toward 1.2875 (the 100-day EMA), with an additional resistance zone at 1.2920, aligning with the upper Bollinger Band boundary.