Technical Analysis: Pound Sterling declines to 50-day EMA

The Pound Sterling trades inside Friday’s trading range amid caution ahead of UK inflation data and BoE monetary policy meeting. The GBP/USD pair struggles to sustain above the 61.8% Fibonacci retracement support (plotted from the March 8 high of 1.2900 to the April 22 low at 1.2300) at 1.2667.

The Cable has declined to near the 50-day Exponential Moving Average (EMA), which trades around 1.2670, suggesting that the near-term outlook is uncertain.

The 14-period Relative Strength Index (RSI) falls back into the 40.00-60.00 range, indicating that the upside momentum has faded