GBP/USD Price Forecast: Falls toward 1.3400 near 50-day EMA
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.
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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