GBP/USD Price Analysis: Grapples to recover recent losses, trades near 1.2730

GBP/USD seems to hold its position above 1.2730 on the hawkish stance of BoE.
MACD suggests a transition to a bearish market sentiment.
A breach below 1.2700 could push the pair toward the 23.6% Fibonacci retracement at 1.2643.

Akhtar Faruqui FXStreet

GBP/USD looks to halt a two-day losing streak, trading slightly higher near 1.2730 during the Asian hours on Tuesday. The GBP/USD pair receives upward support from the hawkish stance of the Bank of England (BoE), coupled with the speculation on the Federal Reserve’s (Fed) dovish stance on the interest rate trajectory in the first quarter of 2024.

However, the technical indicators for the GBP/USD pair are signaling a bearish momentum. The 14-day Relative Strength Index (RSI) below the 50 level indicates downward pressure, suggesting a weaker outlook for the GBP/USD pair.

Additionally, the Moving Average Convergence Divergence (MACD) line is positioned above the centerline but has crossed below the signal line. This shift indicates a potential transition to a bearish market sentiment.

The 14-day Exponential Moving Average (EMA) at 1.2705 aligned with the psychological level at 1.2700 appears to be the key support region. A breach below the region could put downward pressure on the GBP/USD pair to navigate the area toward the major support at 1.2650 lined up with the 23.6% Fibonacci retracement at 1.2643.

On the upside, the 1.2750 level could act as the major barrier following the psychological level at the 1.2800 level. A firm breakthrough above the latter could support the GBP/USD pair to approach December’s high at 1.2827 level before the major level at 1.2850.

GBP/USD: Daily Chart

GBP/USD: more technical levels to watch

Overview
Today last price	1.2734
Today Daily Change	0.0003
Today Daily Change %	0.02
Today daily open	1.2731

Trends
Daily SMA20	1.2666
Daily SMA50	1.25
Daily SMA100	1.245
Daily SMA200	1.2531

Levels
Previous Daily High	1.2731
Previous Daily Low	1.2731
Previous Weekly High	1.2828
Previous Weekly Low	1.2685
Previous Monthly High	1.2828
Previous Monthly Low	1.2501
Daily Fibonacci 38.2%	1.2731
Daily Fibonacci 61.8%	1.2731
Daily Pivot Point S1	1.2731
Daily Pivot Point S2	1.2731
Daily Pivot Point S3	1.2731
Daily Pivot Point R1	1.2731
Daily Pivot Point R2	1.2731
Daily Pivot Point R3	1.2731

(This story was corrected on January 2 at 08:00 GMT to say, in the second paragraph, that the 14-day RSI indicates downward pressure for the GBP/USD pair, not EUR/USD.)

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.

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