GBP/USD Price Analysis: Maintains position above 1.2400 supported by nine-day EMA
- GBP/USD holds position above the psychological support level at 1.2400
- A break below the nine-day EMA could further navigate toward a psychological level of 1.2300,
- The major level of 1.2450 lined up with the 38.2% Fibonacci retracement could act as the key resistance region.
GBP/USD looks to extend its losses for the third consecutive day ahead of the Retail Sales data from the United Kingdom, trading around 1.2410 during the Asian session on Friday. The 1.2400 psychological level serves as immediate support, followed by the next support around 1.2350, which is aligned with the nine-day Exponential Moving Average (EMA) at the 1.2353 level.
A break below the latter could further weigh on the GBP/USD pair, potentially navigating toward the region around the psychological level at 1.2300, in conjunction with the 21-day EMA at 1.2295.
Despite the current downward movement, the technical indicators for the GBP/USD pair present a bullish outlook. The 14-day Relative Strength Index (RSI) above the 50 level indicates upward support, suggesting a robust momentum in favor of the pair.
Additionally, the Moving Average Convergence Divergence (MACD) line, situated above the centerline and showing divergence above the signal line, implies a bullish momentum in the GBP/USD pair.
On the upside, the GBP/USD pair trades below the major level of 1.2450 aligned with the 38.2% Fibonacci retracement at 1.2459, which may serve as the key resistance area. A decisive breakthrough above this barrier has the potential to encourage bullish sentiment, opening the path towards the psychological level at 1.2500, aligning with the weekly high at 1.2505.
GBP/USD: Daily Chart
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.
