GBP/USD: The decline continues ?

Hello, dear traders! What are your thoughts on GBP/USD? Let’s explore and build a strong trading foundation for the new day!

Overall, GBP/USD experienced a shakeup on Thursday, showing a technical rejection from key moving averages and testing below the 1.2400 level. In context, the Bank of England cut interest rates by an additional 25 basis points but delivered a hawkish tone, leading the market to scale back their expectations for further rate cuts throughout the rest of 2025.

Additionally, the Relative Strength Index (RSI) on the four-hour chart has slightly dipped below 50, indicating a loss of bullish momentum. GBP/USD was last seen trading near 1.2455 (the 0.5 Fibonacci retracement of the latest downtrend). If GBP/USD firmly drops below this level and starts using it as resistance, the previous low of 1.236 could act as support before the price declines further, with a target to fill the GAP formed earlier.

Personally, Joe expects the price to decline significantly during today’s trading session, but after a relatively calm consolidation around the EMA 34 and 89. The pair’s decline is anticipated to reach the 1.2274 level.

Wishing you happy trading and great profits!