GBP/USD Price Analysis: Aims toward 1.2700 after a break of ascending channel

GBP/USD breaks below the bottom of an ascending channel and the 50-day EMA at 1.2742, trading at 1.2715 with a neutral to downward bias.
If the pair drops below the 1.2700 psychological level, support may be found at the 100-day EMA at 1.2591, followed by the 200-day EMA at 1.2440.
A rebound above 1.2700 and reclaiming the 50-day EMA could lead to a rally towards 1.2800, with the next resistance at the 20-day EMA at 1.2827.
The RSI has turned bearish, while the three-day RoC suggests that the 1.2700 level might hold in the short term amid the BoE monetary policy decision.

Christian Borjon Valencia FXStreet

GBP/USD breaks below the bottom of an ascending channel, ahead of the Bank of Englan’s (BoE) monetary policy decision on Thursday, as the pair aims toward the 1.2700 psychological figure. As the Asian session commences, the GBP/USD is exchanging hands at 1.2715, posting minuscule gains of 0.04%.

GBP/USD Price Analysis: Technical outlook

The GBP/USD is neutral to downward biased, as the daily chart depicts, as the pair dropped on Wednesday’s session below the 50-day Exponential Moving Average (EMA) at 1.2742. In addition, the GBP/USD extended its fall below the bottom of the ascending channel, opening the door for further losses. That, alongside the Relative Strength Index (RSI) indicator turning bearish, could pave the way for a drop below 1.2700. Nevertheless, the three-day Rate of Change (RoC) portrays a slight divergence with price action, suggesting that the 1.2700 psychological level might hold in the near term.

If GBP/USD drops below 1.2700, next support emerges at the 100-day EMA at 1.2591, followed by the 200-day EMA at 1.2440. Conversely, if GBP/USD stays above 1.2700 and reclaims the 50-day EMA at 1.2742, that could exacerbate a rally towards 1.2800 and beyond. Next resistance emerges at the 20-day EMA at 1.2827, followed by a downslope resistance trendline at 1.2925/40.

GBP/USD Price Action – Daily chart

GBP/USD

Overview
Today last price	1.2716
Today Daily Change	-0.0060
Today Daily Change %	-0.47
Today daily open	1.2776

Trends
Daily SMA20	1.29
Daily SMA50	1.2713
Daily SMA100	1.2567
Daily SMA200	1.23

Levels
Previous Daily High	1.2841
Previous Daily Low	1.2741
Previous Weekly High	1.2996
Previous Weekly Low	1.2763
Previous Monthly High	1.3142
Previous Monthly Low	1.2659
Daily Fibonacci 38.2%	1.278
Daily Fibonacci 61.8%	1.2803
Daily Pivot Point S1	1.2731
Daily Pivot Point S2	1.2686
Daily Pivot Point S3	1.2631
Daily Pivot Point R1	1.2832
Daily Pivot Point R2	1.2887
Daily Pivot Point R3	1.2932

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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