The GBP/USD currency pair continues to face downward pressure, trading near 1.2360 during Thursday’s Asian session, marking its third consecutive day of decline. Technical indicators point to a sustained bearish trend, with the pair retreating back into a descending channel pattern.
The 14-day Relative Strength Index (RSI) approaches the oversold zone, nearing the 30 level, which suggests strengthening negative momentum. Furthermore, the pair remains below both the nine-day and 14-day Exponential Moving Averages (EMAs), signaling weakness in short-term price action.
To the downside, the GBP/USD pair faces the prospect of revisiting the recent nine-month low of 1.2321, recorded on January 8. A further decline could bring the next key support at 1.2299 into play—an area last seen in April 2023. A break below this level would likely fuel the bearish outlook, potentially driving the pair toward the lower boundary of the descending channel, near 1.2050.
On the flip side, any upward move will encounter resistance around the channel’s upper limit, near the nine-day EMA at 1.2447, followed by the 14-day EMA at 1.2481. A firm breakout above this resistance zone could shift sentiment, paving the way for a potential rally toward the two-month high of 1.2811, last reached on December 6.
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