• GBP/USD declines 0.26% to 1.3076, after peaking at 1.3134, influenced by dovish BoE remarks and rising US Treasury yields.
• Bearish RSI indicates seller dominance; key supports are at the 50-DMA of 1.3077, 1.3031, and 1.3001.
• Resistance stands at 1.3100, with additional targets at 1.3134 and the October 4 high of 1.3174.

The Pound Sterling extends its losses against the Greenback in early trading during the North American session, down 0.26%. Dovish remarks by the Bank of England (BoE) Governor Andrew Bailey began Sterling’s downfall last week. Therefore, the GBP/USD trades at 1.3076 after hitting a daily high of 1.3134.

GBP/USD Price Forecast: Technical outlook

During the overnight session for American traders, the GBP/USD hit a three-week low of 1.3058 before recovering some ground. The jump in US Treasury yields bolstered the Greenback, which has risen to a 7-week high above 102.00 yet remains shy of 103.00.

The Relative Strength Index (RSI) shows signs that sellers are in charge after shifting bearish. Given the backdrop, the path of least resistance for the Pound is tilted to the downside.

The first support for GBP/USD would be the 50-day moving average (DMA) at 1.3077. On further weakness, the next support would be the September 12 low of 1.3031, followed by the latest swing low of 1.3001, the September 11 low.

Conversely, if the pair rises above 1.3100, look for a re-test of the day’s high of 1.3134, ahead of challenging 1.3150. Up next will be the October 4 peak at 1.3174 before 1.3200.