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GBP/USD Price Forecast: Remains below 1.2250 barrier near nine-day EMA

  • GBP/USD faces challenges as it is confined within a descending channel pattern.
  • The pair could test its initial resistance at the nine-day EMA of 1.2278 level.
  • The primary support appears at the psychological level of 1.2100, aligned with the 14-month low at 1.2099.

The GBP/USD pair remains subdued for the second successive day, trading near 1.2230 during the Asian session on Friday. However, technical analysis of the daily chart suggests a persistent bearish bias, with the pair continuing to move within a descending channel pattern.

The 14-day Relative Strength Index (RSI) sits just above the 30 level, indicating increased bearish momentum. Moreover, the pair remains below the nine- and 14-day Exponential Moving Averages (EMAs), signaling weak short-term price dynamics and reinforcing the downward trend. 

On the downside, the GBP/USD pair could navigate the region around the psychological level of 1.2100, aligned with the 14-month low at 1.2099, recorded on January 13. A break below this level could strengthen the bearish bias, potentially driving the pair toward the lower boundary of the descending channel near 1.1950.

The GBP/USD pair may encounter immediate resistance at the nine-day EMA at 1.2278, followed by the 14-day EMA at 1.2328. A decisive breakout above these levels could enhance short-term price momentum, paving the way for a potential move toward the descending channel’s upper boundary at the 1.2500 level.

GBP/USD: Daily Chart

British Pound PRICE Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the New Zealand Dollar.

 USDEURGBPJPYCADAUDNZDCHF
USD 0.04%0.04%0.14%0.03%0.13%0.19%0.00%
EUR-0.04% -0.01%0.13%-0.02%0.09%0.15%-0.03%
GBP-0.04%0.00% 0.10%-0.01%0.09%0.15%-0.03%
JPY-0.14%-0.13%-0.10% -0.10%-0.01%0.04%-0.13%
CAD-0.03%0.02%0.00%0.10% 0.10%0.16%-0.02%
AUD-0.13%-0.09%-0.09%0.01%-0.10% 0.05%-0.12%
NZD-0.19%-0.15%-0.15%-0.04%-0.16%-0.05% -0.17%
CHF-0.01%0.03%0.03%0.13%0.02%0.12%0.17% 

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

Author

Akhtar Faruqui

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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