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