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.

Akhtar Faruqui FXStreet

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

GBP/USD: additional technical levels

Overview
Today last price	1.2701
Today Daily Change	-0.0019
Today Daily Change %	-0.15
Today daily open	1.272

Trends
Daily SMA20	1.2686
Daily SMA50	1.2543
Daily SMA100	1.2448
Daily SMA200	1.2538

Levels
Previous Daily High	1.2771
Previous Daily Low	1.2611
Previous Weekly High	1.2771
Previous Weekly Low	1.2611
Previous Monthly High	1.2828
Previous Monthly Low	1.2501
Daily Fibonacci 38.2%	1.271
Daily Fibonacci 61.8%	1.2672
Daily Pivot Point S1	1.2631
Daily Pivot Point S2	1.2541
Daily Pivot Point S3	1.2471
Daily Pivot Point R1	1.279
Daily Pivot Point R2	1.2861
Daily Pivot Point R3	1.295

Author

Akhtar Faruqui

FXStreet

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.

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY approaches 158.00 as Japanese Yen resumes decline

USD/JPY is resuming its upside in the European session on Friday, refreshing two-week highs and nearing 158.00. The Japanese Yen extends losses, despite the Bank of Japan's (BoJ) expected rate hike to 1.25% and hawkish Governor Ueda's comments, as two surprise dissents against the rate hike weigh on it.

Gold keeps the bid tone in place; still below $4,400

Gold adds to the optimism seen in the second half of the week, trading with decent gains just below the $4,400 mark per troy ounce on Friday. The precious metal’s advance finds traction in declining crude oil prices and fresh selling pressure on the US Dollar.

Why altcoin season isn't coming back — and what stole its capital

If, after two years of being frozen in ice, Katara and Sokka woke you up to the crypto market, it would seem like 100 years have passed. With Bitcoin soaring to record highs just over a year ago, everyone expected a routine altcoin season, where investors take profits from the top crypto to chase higher returns in altcoins.

BoJ Recap: Not as hawkish as expected

The BoJ raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks. Governor Kazuo Ueda said the policy phase had changed.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.