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    GBP/USD Price Analysis: Extends gains towards 1.2650 major barrier aligned with 14-day EMA

    FXStreet
    Updated Feb 8, 2024 05:52
    Mitrade

    ■  GBP/USD moves on an upward trajectory amid a bearish sentiment.

    ■  The major level around 1.2650 lined up with the 14-day EMA at 1.2656 emerges as the immediate barrier.

    ■  The psychological level at 1.2600 could act as a key support level.


    GBP/USD continues the winning streak for the straight third session, edging higher to near 1.2630 during the Asian session on Thursday. The GBP/USD pair receives upward support as the US Dollar (USD) faces challenges against the Pound Sterling (GBP), which could be attributed to the downbeat US yields amid an improved risk-on sentiment.


    The GBP/USD pair could find the immediate barrier at the major level around 1.2650 in conjunction with the 14-day Exponential Moving Average (EMA) at 1.2656, followed by the 50.0% retracement level at 1.2673. A breakthrough above this level could strengthen the upward sentiment and support the pair to approach the resistance zone around the psychological level at 1.2700 aligned with the 61.8% Fibonacci retracement at 1.2709 level.


    However, the technical analysis of the GBP/USD pair shows that the 14-day Relative Strength Index (RSI) is positioned below 50. This indicates a bearish momentum for the pair. Additionally, the Moving Average Convergence Divergence (MACD), a lagging indicator, suggests a confirmation of the subdued momentum for the pair. This is evident from the MACD line being situated below the centerline and the signal line.


    The GBP/USD pair may encounter support at the psychological level of 1.2600 following further support near the major level at 1.2550. A break below the latter could push the pair to test the weekly low at 1.2518 before the psychological level at 1.2500.


    GBP/USD: Daily Chart

    * The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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