The GBP/USD pair steadied around 1.3320 during Monday’s Asian trading session, following losses in the previous session. Technical analysis suggests that the bullish trend is losing momentum, as the pair has broken below its ascending channel pattern, indicating a weakening upward bias.
Despite this, the pair remains above the nine-day Exponential Moving Average (EMA), which continues to provide short-term support for bullish momentum. The 14-day Relative Strength Index (RSI) also remains above 50, reinforcing the short-term positive outlook for the GBP/USD.
On the upside, immediate resistance is found at the psychological level of 1.3400, followed by 1.3434, which was last seen in September 2024 and represents the lowest level since March 2022. A sustained break above these levels could strengthen the bullish bias, with the pair potentially targeting the upper boundary of the ascending channel near 1.3480.
However, the break below the ascending channel has introduced downward pressure, with immediate support at the nine-day EMA, located at 1.3274. A decisive move below this level could undermine short-term bullish momentum and bring the 50-day EMA, situated at 1.2980, into focus as the next key support.
A deeper decline beneath the 50-day EMA could put the medium-term bullish outlook at risk, potentially pushing the GBP/USD pair toward the two-month low of 1.2577, recorded on March 3, and further towards the three-month low of 1.2249, marked on February 3.
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