GBP/USD Price Analysis: Slips to fresh lows of the day at around the 1.2360 area
|- GBP/USD was rejected at 1.2400 for the fifth straight day as traders brace for a busy calendar.
- The US Federal Reserve and Bank of England monetary policy decisions, are looming and would keep investors at bay.
- GBP/USD Price Analysis: Sideways, trapped within the 1.2340-1.2430 range.
GBP/USD losses ground in the New York session, ahead of a busy week in the global economic docket, with major central banks hosting monetary policy decisions. The US Federal Reserve (Fed) is expected to raise rates by 25 bps, while the Bank of England (BoE) would likely lift rates by 50 bps, with analysts estimating that after February’s decision, the BoE would pause. At the time of writing, the GBP/USD is trading at 1.2367.
GBP/USD Price Analysis: Technical outlook
Consolidation is the game’s name in the case of the GBP/USD failing to break above/below the top/bottom of the 1.2430/1.2344. Even though it’s sliding to a fresh day’s low at 1.2367, it would keep range-trading in the previously mentioned area. However, the GBP/USD is closing into a 13-day upslope support trendline, which, once cleared, the GBP/USD could tumble to the 1.2300 figure, followed by the 20-day Exponential Moving Average (EMA) at 1.2277.
As an alternate scenario, the GBP/USD’s reclaiming 1.2400, then the GBP/USD could rally towards the 1.2500 area, but on its way north, it would need to face the December 14 high of 1.2446.
Oscillators like the Relative Strength Index (RSI) and the Rate of Change (RoC) suggest further downside is expected.
GBP/USD Key Technical Levels
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.