GBP/USD Price Analysis: The key contention level is seen at 1.2500

GBP/USD remains on the defensive around 1.2539 ahead of the FOMC, and BoE rate decision.
The pair maintains the bearish outlook, holding below the 50- and 100-hour EMA; the RSI indicator stands in the bearish zone below 50.
1.2530 acts as an initial level; the immediate resistance level will emerge at 1.2590.

Lallalit Srijandorn FXStreet

The GBP/USD pair remains under pressure below the mid-1.2500s during the early European session on Monday. Investors are in a cautious mood ahead of the key events in the US and UK this week. The Federal Open Market Committee (FOMC) rate decision on Wednesday and the Bank of England (BoE) rate decision on Thursday will be in the spotlight this week and could trigger volatility in the market. The major pair currently trades near 1.2539, losing 0.07% on the day.

From a technical perspective, GBP/USD maintains a bearish outlook as the pair holds below the 50- and 100-hour Exponential Moving Averages (EMAs) on the four-hour chart. The prevailing bearish sentiment appears in the Relative Strength Index (RSI), which remains below 50, indicating the path of least resistance is to the downside.

The lower limit of the Bollinger Band at 1.2530 acts as an initial level for GBP/USD. The key contention level to watch is a psychological round mark and a low of December 8 at 1.2500. Any follow-through selling will see a drop to a low of November 22 at 1.2450. Finally, the additional downside filter is a low of November 17 at 1.2374.

On the upside, the immediate resistance level will emerge at the 50-hour EMA at 1.2590. The next hurdle is seen at the upper boundary of the Bollinger Band at 1.2608. A break above the latter will see a rally to a high of December 5 at 1.2652, en route to a high of December 4 at 1.2712.

GBP/USD four-hour chart

GBP/USD

Overview
Today last price	1.2541
Today Daily Change	-0.0007
Today Daily Change %	-0.06
Today daily open	1.2548

Trends
Daily SMA20	1.255
Daily SMA50	1.2339
Daily SMA100	1.2464
Daily SMA200	1.2486

Levels
Previous Daily High	1.2602
Previous Daily Low	1.2502
Previous Weekly High	1.2724
Previous Weekly Low	1.2502
Previous Monthly High	1.2733
Previous Monthly Low	1.2096
Daily Fibonacci 38.2%	1.254
Daily Fibonacci 61.8%	1.2564
Daily Pivot Point S1	1.25
Daily Pivot Point S2	1.2452
Daily Pivot Point S3	1.2401
Daily Pivot Point R1	1.2599
Daily Pivot Point R2	1.265
Daily Pivot Point R3	1.2698

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.

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