GBP/USD Price Analysis: Struggles at the 200-day EMA, plummets below 1.2000

Unable to crack the 200-day EMA, the GBP/USD fell beneath the psychological 1.2000 figure.
Short-term, the GBP/USD is downward biased, and once reclaiming 1.1900, it might fall to 1.1820s.

Christian Borjon Valencia FXStreet

The GBP/USD moved downward on Monday, spurred by tensions arising in China due to Covid-19 zero-tolerance restrictions. US central bankers foresee a 2023 year of high-interest rates as they commit to higher for longer bolstered the US Dollar (USD). At the time of writing, the GBP/USD is trading at 1.1957, below its opening price by 0.07%, as the Asian session begins.

GBP/USD Price Analysis: Technical outlook

On Monday, the GBP/USD dived below the 1.2000 figure, exacerbated by Pound Sterling (GBP) buyers unable to crack the 200-day Exponential Moving Average (EMA) around 1.2170. Therefore, the GBP/USD dropped below the 1.2000 figure, eyeing a re-test of an upslope trendline drawn from September lows that pass around 1.1640/60. For that scenario to play out, the GBP/USD needs to drop below the November 23 daily low of 1.1872, which, once cleared, could pave the way for the previously mentioned upslope trendline.

Short term, the GBP/USD is testing the 50-Exponential Moving Average (EMA) in the 4-hour chart at 1.1953. The Relative Strength Index (RSI) sliding below the 50-midline suggests sellers outweigh buyers. Hence, the GBP/USD path of least resistance is downward biased.

The GBP/USD first support would be 1.1953. A decisive break will expose the 1.1900 figure, followed by the S1 daily pivot at 1.1890, ahead of the S2 daily pivot at 1.1828. On the flip side, the GBP/USD first resistance would be 1.2000, followed by the daily pivot point at 1.2010, followed by the R1 daily pivot at 1.2070.

GBP/USD Key Technical Levels

GBP/USD

Overview
Today last price	1.1958
Today Daily Change	-0.0139
Today Daily Change %	-1.15
Today daily open	1.2097

Trends
Daily SMA20	1.1706
Daily SMA50	1.1417
Daily SMA100	1.1644
Daily SMA200	1.2185

Levels
Previous Daily High	1.2128
Previous Daily Low	1.2058
Previous Weekly High	1.2154
Previous Weekly Low	1.1779
Previous Monthly High	1.1646
Previous Monthly Low	1.0924
Daily Fibonacci 38.2%	1.2085
Daily Fibonacci 61.8%	1.2101
Daily Pivot Point S1	1.2061
Daily Pivot Point S2	1.2025
Daily Pivot Point S3	1.1992
Daily Pivot Point R1	1.2131
Daily Pivot Point R2	1.2164
Daily Pivot Point R3	1.22

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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