GBP/USD Price Analysis: Follows the footprints of sideways US Dollar Index

• GBP/USD is juggling in a narrow range above 1.2480 amid sideways performance by the USD Index.
• Weak UK Employment data has provided some relief to BoE policymakers.
• GBP/USD is hovering near the lower portion of the Rising Channel pattern plotted at 1.2276.

The GBP/USD pair is demonstrating a back-and-forth action above 1.2480 in the early European session. The Cable is struggling to find any decisive move, following the footprints of the sideways US Dollar Index (DXY). The US Dollar Index (DXY) is auctioning topsy-turvy below the immediate resistance of 102.70.

The FX domain failed to show any action despite discussions over the US debt-ceiling postponed further to later this week. However, US President Joe Biden has cleared that he will remain in touch with Speaker McCarthy each day to resolve negotiations.

Meanwhile, weak United Kingdom Employment data has provided some relief to Bank of England (BoE) policymakers. Investors should note that labor shortages and historically high food inflation have remained major catalysts for double-digit UK inflation.

GBP/USD is hovering near the lower portion of the Rising Channel chart pattern plotted from April 03 low at 1.2276. The upper portion of the aforementioned chart pattern is placed from April 04 high at 1.2525. The 20-period Exponential Moving Average (EMA) has restricted the upside of the Pound Sterling.

The Relative Strength Index (RSI) (14) seems vulnerable in the 40.00-60.00 range, A sharp slippage below 40.00 will trigger the downside momentum.

A downside move below May 12 low at 1.2440 will trigger a breakdown of the Rising Channel pattern and will expose the Cable to April 21 low at 1.2367 followed by April 03 low at 1.2276.

On the flip side, a recovery move above May 09 high at 1.2640 will drive the major toward the round-level resistance at 1.2700 and 26 April 2022 high at 1.2772.

GBP/USD four-hour chart