GBP/USD Price Analysis: Remains under selling pressure, the key contention is seen at 1.2100

The GBP/USD pair extends its downside for the seventh consecutive day during the Asian session on Thursday. The downtick of the pair is supported by the firmer US Dollar (USD), higher Treasury Yield and upbeat US economic data. The pair currently trades near 1.2133, losing 0.02% on the day.

The Bank of England (BoE) unexpectedly paused its rate hike cycle while the Federal Reserve (Fed) offered hawkish remarks and signaled that rate additional rate hike is possible. The divergence of monetary policy between the BoE and Fed exerts pressure on the British Pound (GBP) and acts as a headwind for the GBP/USD pair.

According to the four-hour chart, GBP/USD holds below the 50- and 100-hour Exponential Moving Averages (EMAs) with a downward slope, which means further downside looks favorable. 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.

The key resistance level for GBP/USD will emerge near the upper boundary of the Bollinger Band and the 50-hour EMA at 1.2250. The additional upside filter is located at 1.2351 (the 100-hour EMA). The next barrier to watch is near a high of September 21 at 1.2421, followed by a psychological round mark at 1.2500.

On the downside, 1.2100 will be the critical support level for the GBP/USD pair. The mentioned level is the confluence of the lower limit of the Bollinger Band, a psychological figure, and a low of March 17. Further south, the next stop is located at 1.2025 (a low of March 16). Any intraday pullback below the latter would expose the next downside stop at 1.2000 (a round mark).

GBP/USD four-hour chart