- GBP/USD holds position above the psychological support level at 1.2400
- A break below the nine-day EMA could further navigate toward a psychological level of 1.2300,
- The major level of 1.2450 lined up with the 38.2% Fibonacci retracement could act as the key resistance region.
GBP/USD looks to extend its losses for the third consecutive day ahead of the Retail Sales data from the United Kingdom, trading around 1.2410 during the Asian session on Friday. The 1.2400 psychological level serves as immediate support, followed by the next support around 1.2350, which is aligned with the nine-day Exponential Moving Average (EMA) at the 1.2353 level.
A break below the latter could further weigh on the GBP/USD pair, potentially navigating toward the region around the psychological level at 1.2300, in conjunction with the 21-day EMA at 1.2295.
Despite the current downward movement, the technical indicators for the GBP/USD pair present a bullish outlook. The 14-day Relative Strength Index (RSI) above the 50 level indicates upward support, suggesting a robust momentum in favor of the pair.
Additionally, the Moving Average Convergence Divergence (MACD) line, situated above the centerline and showing divergence above the signal line, implies a bullish momentum in the GBP/USD pair.
On the upside, the GBP/USD pair trades below the major level of 1.2450 aligned with the 38.2% Fibonacci retracement at 1.2459, which may serve as the key resistance area. A decisive breakthrough above this barrier has the potential to encourage bullish sentiment, opening the path towards the psychological level at 1.2500, aligning with the weekly high at 1.2505.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD remains heavy below 1.2300 amid UK bond market sell-off
GBP/USD consoldiates near 14-month lows below 1.2300 in European trading on Thursday. The pair bears the brunt of the UK bond market sell-off, with the 10-year Gilt yields at the highest since August 2008. Extended US Dollar strength and a bearish daily technical setup exaerbate its pain.
EUR/USD stays depressed near 1.0300 after Eurozone Retail Sales data
EUR/USD remains on the back foot at around 1.0300 in the European session on Thursday. German Industrial Production and Eurozone Retail Sales data for November fail to lift the Euro amid a sustained US Dollar demand. Fedspeak is next in focus.
Gold price moves back closer to multi-week top; modest USD strength might cap gains
Gold price turns positive for the third straight day and draws support from a combination of factors. Geopolitical risks, trade war fears and retreating US bond yields lend support to the XAU/USD pair.
BNB poised for a decline on negative Funding Rate
BNB price hovers around $696.40 on Thursday after declining 4.58% in the previous two days. BNB’s momentum indicators hint for a further decline as its Relative Strength Index and Moving Average Convergence Divergence show bearish signals.
Bitcoin edges below $96,000, wiping over leveraged traders
Bitcoin's price continues to edge lower, trading below the $96,000 level on Wednesday after declining more than 5% the previous day. The recent price decline has triggered a wave of liquidations across the crypto market, resulting in $694.11 million in total liquidations in the last 24 hours.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.