- GBP/USD could break the psychological support of the 1.2600 level to revisit March’s low at 1.2575.
- Technical analysis suggests the bearish sentiment to test the major support of the 1.2550 level.
- The resistance zone could be found around the 23.6% Fibonacci retracement level of 1.2650 level and the nine-day EMA at 1.2668.
GBP/USD extends its losses for the second consecutive day, depreciating to near 1.2620 during the Asian session on Wednesday. The pair could test the psychological support level of 1.2600. If this level is breached, it could prompt the pair to revisit March’s low at 1.2575.
The technical analysis of the GBP/USD pair suggests a bearish trend. The 14-day Relative Strength Index (RSI) is positioned below 50, indicating a bearish sentiment. Additionally, the Moving Average Convergence Divergence (MACD) confirms the bearish trend, as the MACD line is below the centerline and exhibits divergence below the signal line.
The bearish sentiment could influence the GBP/USD pair to test the major support of 1.2550 level, followed by February’s low of 1.2518.
On the upside, the GBP/USD pair could meet the major barrier at 23.6% Fibonacci retracement level of 1.2650 level. A breakthrough above this barrier could exert upward support for the pair to test the nine-day Exponential Moving Average (EMA) at 1.2668.
If the GBP/USD pair surpasses the latter, it could approach the psychological level of 1.2700.
GBP/USD: Daily Chart
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