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GBP/USD Price Forecast: Falls toward 1.3400 near 50-day EMA

  • GBP/USD may find the primary barrier at the nine-day EMA of 1.3455.
  • The 14-day Relative Strength Index at 53 has eased from near-overbought, signaling cooling momentum.
  • The initial support lies at the psychological level of 1.3400.

GBP/USD extends its losses for the second successive session, trading around 1.3420 during the Asian hours on Monday. The technical analysis of the daily chart indicates that the 14-day Relative Strength Index (RSI) at 53 (neutral) has eased from near overbought, indicating that momentum has cooled while remaining above the midline. RSI holds above 50, keeping a modest bullish bias.

The nine-day Exponential Moving Average (EMA) stands above the 50-day EMA, preserving a bullish bias as price consolidates below the short-term average but holds over the medium-term line. This suggests a shallow pullback within the prevailing uptrend. The short-term trend pauses as the nine-day EMA flattens, while the rising 50-day EMA underpins the broader advance.

The immediate barrier lies at the nine-day EMA of 1.3455. A daily close back above the short-term average would reassert upside control and lead the GBP/USD pair to test the three-month high of 1.3534, reached on December 24. Further gains could open a move toward the six-month high of 1.3726, followed by the 1.3788, the highest level since October 2021.

On the downside, the GBP/USD pair falls toward the psychological level of 1.3400, followed by the 50-day EMA at 1.3363. A break below the medium-term price momentum and put downward pressure on the pair to navigate the region around the eight-month low of 1.3010.

GBP/USD: Daily Chart

Pound Sterling Price Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the weakest against the US Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD0.34%0.26%0.22%0.29%0.39%0.40%0.24%
EUR-0.34%-0.09%-0.09%-0.04%0.05%0.05%-0.10%
GBP-0.26%0.09%-0.02%0.04%0.14%0.13%-0.02%
JPY-0.22%0.09%0.02%0.07%0.16%0.15%0.00%
CAD-0.29%0.04%-0.04%-0.07%0.09%0.09%-0.06%
AUD-0.39%-0.05%-0.14%-0.16%-0.09%-0.00%-0.15%
NZD-0.40%-0.05%-0.13%-0.15%-0.09%0.00%-0.15%
CHF-0.24%0.10%0.02%-0.01%0.06%0.15%0.15%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

(The technical analysis of this story was written with the help of an AI tool.)

Author

Akhtar Faruqui

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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