GBP/USD Price Analysis: Holds below 1.2700, Bear cross eyed


  • GBP/USD trades in positive territory for two straight days on Thursday. 
  • The pair keeps the bearish vibe unchanged below the key EMA; RSI indicator stands below the 50 midline. 
  • The immediate resistance level is seen at 1.2700; the initial support level is located at 1.2628.

The GBP/USD pair gains ground below the 1.2700 barrier during the early European session on Thursday. The major pair trades in positive territory for the second consecutive day as traders slashed their bets on an early interest rate cut by the Bank of England (BoE). GBP/USD currently trades near 1.2682, down 0.01% on the day. 

From the technical perspective, the bearish outlook of the GBP/USD pair remains intact as the pair holds below the 50- and 100-hour Exponential Moving Averages (EMA) on the four-hour chart. It’s worth noting that the 50-hour EMA is on the verge of crossing below the 100-hour EMA. If a decisive crossover occurs on the four-hour chart, it would validate a Bear Cross, highlighting that the path of least resistance for GBP/USD is to the downside.

The downward momentum of the major pair is supported by the 14-day Relative Strength Index (RSI), which stands in bearish territory below the 50 midline, supporting the sellers for now.

The confluence of the 100-hour EMA and a psychological round figure at 1.2700 acts as an immediate resistance level for the major pair for the time being. The next upside barrier will emerge at the 1.2760-1.2765 region, portraying a high of January 15 and the upper boundary of the Bollinger Band. Further north, the additional upside filter is seen near a high of January 12 at 1.2785, followed by a high of December 28, 2023 at 1.2828.

On the downside, the initial support level for GBP/USD is located near a low of December 18 at 1.2628. The next contention level to watch is the lower limit of the Bollinger Band at 1.2608. Any follow-through selling below the latter will see a drop to a low of December 7 at 1.2544.

GBP/USD four-hour chart

 

GBP/USD

Overview
Today last price 1.2681
Today Daily Change -0.0004
Today Daily Change % -0.03
Today daily open 1.2685
 
Trends
Daily SMA20 1.2713
Daily SMA50 1.2618
Daily SMA100 1.2451
Daily SMA200 1.2549
 
Levels
Previous Daily High 1.2696
Previous Daily Low 1.2597
Previous Weekly High 1.2786
Previous Weekly Low 1.2674
Previous Monthly High 1.2828
Previous Monthly Low 1.2501
Daily Fibonacci 38.2% 1.2658
Daily Fibonacci 61.8% 1.2635
Daily Pivot Point S1 1.2622
Daily Pivot Point S2 1.256
Daily Pivot Point S3 1.2522
Daily Pivot Point R1 1.2722
Daily Pivot Point R2 1.2759
Daily Pivot Point R3 1.2822

 

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD: Gains look capped near 0.6800

AUD/USD: Gains look capped near 0.6800

AUD/USD lost ground for the third session in a row and revisited the 0.6720-0.6715 band following the generalized bearish performance of commodities and ahead of the key release of the Australian labour market report.

AUD/USD News

EUR/USD keeps the bid tone in place ahead of ECB

EUR/USD keeps the bid tone in place ahead of ECB

EUR/USD added to Tuesday’s advance and rose to new highs around 1.0950 in response to extra weakness in the Greenback and rising expectations prior to the ECB gathering on Thursday.

EUR/USD News

Gold retreats from record highs, retains the bullish stance

Gold retreats from record highs, retains the bullish stance

Gold trades flat on the day below $2,470 after touching a new record high above $2,480 in the Asian session on Wednesday. The modest recovery seen in the US Treasury bond yields causes XAU/USD to consolidate its gains.

Gold News

Ripple extends gains as XRP traders await end of SEC vs. Ripple lawsuit

Ripple extends gains as XRP traders await end of SEC vs. Ripple lawsuit

Ripple (XRP), XRP Ledger’s native token, extended gains by nearly 7% on Wednesday. The sixth largest asset by market capitalization rallied for the tenth consecutive day and erased all losses from the last 99 days. 

Read more

Divergence in US Indices can’t last for long

Divergence in US Indices can’t last for long

US equity indices have been in a state of surprising divergence for over a week, with the Dow Jones and Russell 2000 shooting up, the Nasdaq-100 working its way down, and the S&P500 treading water.

Read more

Forex MAJORS

Cryptocurrencies

Signatures