• GBP/USD slips towards key support at 1.3044, with momentum favoring further downside in the short term.
• RSI is turning bearish, signaling potential losses, with next support at 1.3000 and the 50-DMA at 1.2940.
• For buyers to regain control, GBP/USD must clear resistance at 1.3143 and push towards 1.3200.

The GBP/USD is on the backfoot after spiking to a daily high of 1.3107 after a solid UK jobs report, though it has retreated below the 1.31 handle as traders await the release of US inflation data. At the time of writing, the pair trades at 1.3052, down 0.17%

GBP/USD Price Forecast: Technical outlook

The GBP/USD fall toward the July 17 peak at 1.3044 could exert downward pressure on the pair and pave the way for further losses.

Momentum favors sellers in the short term. The Relative Strength Index (RSI) remains bullish, though its slope is aiming down and about to turn bearish, which could accelerate Sterling’s fall against the Greenback.

In that scenario, the GBP/USD path of least resistance is tilted to the downside. The first support would be 1.3044, followed by the psychological figure of 1.3000. A breach or the latter will expose the 50-day moving average (DMA) at 1.2940, ahead of the 1.2900 mark.