GBP/USD Price Analysis: Extends gains towards 1.2650 major barrier aligned with 14-day EMA
|- GBP/USD moves on an upward trajectory amid a bearish sentiment.
- The major level around 1.2650 lined up with the 14-day EMA at 1.2656 emerges as the immediate barrier.
- The psychological level at 1.2600 could act as a key support level.
GBP/USD continues the winning streak for the straight third session, edging higher to near 1.2630 during the Asian session on Thursday. The GBP/USD pair receives upward support as the US Dollar (USD) faces challenges against the Pound Sterling (GBP), which could be attributed to the downbeat US yields amid an improved risk-on sentiment.
The GBP/USD pair could find the immediate barrier at the major level around 1.2650 in conjunction with the 14-day Exponential Moving Average (EMA) at 1.2656, followed by the 50.0% retracement level at 1.2673. A breakthrough above this level could strengthen the upward sentiment and support the pair to approach the resistance zone around the psychological level at 1.2700 aligned with the 61.8% Fibonacci retracement at 1.2709 level.
However, the technical analysis of the GBP/USD pair shows that the 14-day Relative Strength Index (RSI) is positioned below 50. This indicates a bearish momentum for the pair. Additionally, the Moving Average Convergence Divergence (MACD), a lagging indicator, suggests a confirmation of the subdued momentum for the pair. This is evident from the MACD line being situated below the centerline and the signal line.
The GBP/USD pair may encounter support at the psychological level of 1.2600 following further support near the major level at 1.2550. A break below the latter could push the pair to test the weekly low at 1.2518 before the psychological level at 1.2500.
GBP/USD: Daily Chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.