GBP/USD Price Forecast: The bearish outlook remains in play near 1.2900

GBP/USD softens to around 1.2910 in Monday’s early European session.  

The negative view of the pair prevails below the 100-day EMA, with the bear RSI indicator. 

The initial support level for the pair emerges at 1.2875; the immediate resistance level is located at 1.2983. 

The GBP/USD pair weakens to near 1.2910 during the early European session on Monday. The stronger US Dollar (USD) following Donald Trump’s election win continues to undermine the major pair as traders expect the inflationary impulses will keep the US Federal Reserve (Fed) from cutting rates as much as they otherwise would have. 

On the other hand, the Bank of England (BoE) reiterated that “a gradual approach to removing policy restraint remains appropriate. Monetary policy will need to continue to remain restrictive for sufficiently long.” Less dovish remarks from the UK central bank could help limit the INR’s losses in the near term. 

According to the daily chart, GBP/USD keeps the bearish vibe unchanged on the daily timeframe, with the price holding below the key 100-day Exponential Moving Average (EMA). Furthermore, the downward momentum is reinforced by the 14-day Relative Strength Index (RSI), which is located below the midline around 43.85, indicating the path of least resistance is to the downside.