GBP/USD Price Analysis: Dives to near 1.2700 psychological support followed by 14-day EMA
|- GBP/USD tumbles to the psychological support amid a stable US Dollar.
- A break below the 14-day EMA at 1.2692 could push the pair to approach the major support at 1.2650.
- Traders would likely await the MACD to confirm the momentum before placing bets.
GBP/USD halts its three-day winning streak, trading around 1.2700 psychological level during the Asian session on Monday. The GBP/USD pair seems to face a critical juncture, with the possibility of a break below the psychological level. If this occurs, it could surpass the 14-day Exponential Moving Average (EMA) at 1.2692.
A breach below this support region might exert downward pressure on the GBP/USD pair, potentially leading it to navigate toward the major support at 1.2650. This level aligns with the 23.6% Fibonacci retracement at 1.2643, serving as a significant area to watch for potential price movements.
However, the technical indicator 14-day Relative Strength Index (RSI) is positioned above the 50 level indicating bullish momentum, suggesting an upward outlook for the GBP/USD pair.
Additionally, the technical analysis of the GBP/USD pair suggests an interesting situation with the Moving Average Convergence Divergence (MACD) indicator. The MACD line is positioned above the centerline, indicating potential bullish momentum. However, there is divergence below the signal line, suggesting a nuanced scenario. Investors might be exercising caution and awaiting confirmation from the MACD before making their bets.
On the upside, the 1.2750 level could act as the major barrier followed by the previous week’s high at 1.2771. A breach above the latter could support the GBP/USD pair to explore the region around the psychological level at 1.2800.
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.