GBP/USD Price Analysis: Hovers below 1.2400 backed by 38.2% Fibonacci retracement

GBP/USD could extend losses toward the support level at 1.2350.
Technical indicators suggest a robust momentum in favor of the pair.
A decisive breakthrough above 1.2400 could encourage bullish sentiment.

Akhtar Faruqui FXStreet

GBP/USD extends losses on the second consecutive day, trading lower around 1.2390 during the Asian session on Thursday. The 1.2350 major level emerges as the key support, following the next support around the psychological level at 1.2300.

A break below the latter could weigh on the GBP/USD pair to navigate the region around the 21-day Exponential Moving Average (EMA) at 1.2282 level following the weekly low at 1.2213.

However, the technical indicator for the GBP/USD pair indeed presents a bullish outlook. The 14-day Relative Strength Index (RSI) above the 50 level indicates upward support, signifying a robust momentum in favor of the pair.

Additionally, the Moving Average Convergence Divergence (MACD) line, situated above the centerline and shown divergence above the signal line, suggests a bullish momentum in the GBP/USD pair.

On the upside, the GBP/USD pair trades below the key psychological level of 1.2400, which serves as a strong resistance. A decisive breakthrough above this barrier has the potential to encourage bullish sentiment, opening the path towards the major level at 1.2450 aligned with the 38.2% Fibonacci retracement at 1.2459. If this resistance is successfully surpassed, the pair may target the 1.2500 level, aligning with the weekly high at 1.2505.

GBP/USD: Daily Chart

GBP/USD

Overview
Today last price	1.2395
Today Daily Change	-0.0015
Today Daily Change %	-0.12
Today daily open	1.241

Trends
Daily SMA20	1.2235
Daily SMA50	1.2258
Daily SMA100	1.2513
Daily SMA200	1.2441

Levels
Previous Daily High	1.2502
Previous Daily Low	1.2404
Previous Weekly High	1.2429
Previous Weekly Low	1.2187
Previous Monthly High	1.2337
Previous Monthly Low	1.2037
Daily Fibonacci 38.2%	1.2441
Daily Fibonacci 61.8%	1.2464
Daily Pivot Point S1	1.2375
Daily Pivot Point S2	1.234
Daily Pivot Point S3	1.2277
Daily Pivot Point R1	1.2473
Daily Pivot Point R2	1.2537
Daily Pivot Point R3	1.2571

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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