GBP/USD Price Analysis: Downtrend remains, despite bouncing off the daily low

• GBP/USD falls 0.20% as market anticipates Bank of England's policy decision.
• Technically, the pair shows a downward trend, supported at 1.2467 but remains under seller pressure with a bearish RSI.
• If GBP/USD exceeds 1.2500, resistance may occur at 200-DMA (1.2543), 1.2594, and May 3 high of 1.2634.

In early trading on Wednesday, the Pound Sterling resumed its downtrend against the US Dollar, as the Greenback remained the strongest currency against other peers. Despite printing losses, Cable remains at familiar levels, ahead of the Bank of England (BoE) monetary policy decision. The GBP/USD trades at 1.2483, down 0.20%.

GBP/USD Price Analysis: Technical outlook

The GBP/USD is biased downward, though it failed to crack a support trendline at around the day's low of 1.2467, which could have opened the door for further losses. Despite the bounce, momentum is still favoring sellers, with the Relative Strength Index (RSI) standing at bearish territory, with its slope aiming down.

In the event of GBP/USD clearing the 1.2500 psychological level, the next resistance would be the 200-day moving average (DMA) at 1.2543. Once cleared, the next stop would be intermediate resistance at the May 6 high at 1.294, followed by the latest cycle high seen at 1.2634, the May 3 high.

GBP/USD Price Action - Daily Chart