GBP/USD Price Analysis: Remains under pressure above the 1.2600 mark, oversold RSI condition eyed

GBP/USD trades in negative territory for two straight days on Wednesday.
The major pair holds below the key EMA with an oversold RSI condition.
The critical support level will emerge at the 1.2600 mark; 1.2686 acts as an immediate resistance level for GBP/USD.

Lallalit Srijandorn FXStreet

The GBP/USD pair faces some selling pressure above 1.2600 during the early European session on Wednesday. Investors await the UK Consumer Price Index (CPI) for December for fresh impetus. The headline UK inflation is estimated to grow 3.8% YoY, while the Core CPI is expected to rise 4.9% YoY. GBP/USD currently trades near 1.2607, losing 0.18% on the day.

Technically, GBP/USD holds below the 100-hour Exponential Moving Average (EMA) on the four-hour chart, which means further downside looks favorable.

The key contention level will emerge at the 1.2600 mark, representing the psychological round level and the lower limit of the Bollinger Band. Any decisive follow-through selling below the latter will see a drop to a low of December 7 at 1.2544, followed by the confluence of the round mark and a low of December 13 at 1.2500.

On the upside, a low of January 8 at 1.2686 acts as an immediate resistance level for GBP/USD. The additional upside filter to watch is a high of January 8 at 1.2767, and finally the upper boundary of the Bollinger Band at the 1.2800 mark.

It’s worth noting that the Relative Strength Index (RSI) holds in bearish territory below 50. However, the oversold RSI condition indicates that further consolidation cannot be ruled out before positioning for any near-term GBP/USD depreciation.

GBP/USD four-hour chart

GBP/USD

Overview
Today last price	1.2608
Today Daily Change	-0.0023
Today Daily Change %	-0.18
Today daily open	1.2631

Trends
Daily SMA20	1.271
Daily SMA50	1.261
Daily SMA100	1.2452
Daily SMA200	1.2548

Levels
Previous Daily High	1.2734
Previous Daily Low	1.262
Previous Weekly High	1.2786
Previous Weekly Low	1.2674
Previous Monthly High	1.2828
Previous Monthly Low	1.2501
Daily Fibonacci 38.2%	1.2664
Daily Fibonacci 61.8%	1.2691
Daily Pivot Point S1	1.2589
Daily Pivot Point S2	1.2547
Daily Pivot Point S3	1.2474
Daily Pivot Point R1	1.2704
Daily Pivot Point R2	1.2776
Daily Pivot Point R3	1.2818

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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.