GBP/USD Price Analysis: The key contention level is seen at 1.2600–1.2610 zone

GBP/USD oscillates in a trading band between 1.2600 and 1.2645 on Monday.
The major pair keeps the bearish outlook below the key EMA; RSI indicator shows non-directional action.
The first upside barrier will emerge at 1.2645; the initial support level is located at the 1.2600–1.2610 zone.

Lallalit Srijandorn FXStreet

The GBP/USD pair consolidates within a narrow trading range of 1.2600–1.2645 during the early European trading hours on Monday. The Bank of England (BoE) governor, Sarah Breeden said last week that the central bank has shifted from tightening rates to thinking about when they might come down as the recent falls in UK inflation have changed the BoE’s outlook. Traders prefer to wait on the sidelines ahead of the UK labor market data on Tuesday. At press time, GBP/USD is trading at 1.2630, gaining 0.01% on the day.

Technically, GBP/USD maintains the bearish outlook unchanged as the pair is below the 100-period Exponential Moving Average (EMA) on the four-hour chart. It’s worth noting that the Relative Strength Index (RSI) hovers around the 50 midlines, indicating the non-directional action of the pair.

A decisive break above the upper boundary of the Bollinger Band at 1.2645 will see a rally to the 100-period EMA at 1.2655. The additional upside filter to watch is a high of January 30 at 1.2721, en route to a high of January 31 at 1.2750.

On the flip side, the initial support level is located in the 1.2600–1.2610 region, portraying the lower limit of the Bollinger Band, psychological round mark, and a low of February 9. A breach of this level will see a drop to a low of February 8 at 1.2572 and a low of December 11 at 1.2535.

GBP/USD four-hour chart

GBP/USD

Overview
Today last price	1.263
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	1.263

Trends
Daily SMA20	1.2672
Daily SMA50	1.2675
Daily SMA100	1.2487
Daily SMA200	1.2565

Levels
Previous Daily High	1.2643
Previous Daily Low	1.2599
Previous Weekly High	1.2643
Previous Weekly Low	1.2518
Previous Monthly High	1.2786
Previous Monthly Low	1.2597
Daily Fibonacci 38.2%	1.2626
Daily Fibonacci 61.8%	1.2616
Daily Pivot Point S1	1.2605
Daily Pivot Point S2	1.2581
Daily Pivot Point S3	1.2562
Daily Pivot Point R1	1.2649
Daily Pivot Point R2	1.2668
Daily Pivot Point R3	1.2693

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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