GBP/USD Price Prediction: Downside Risks Loom Below 1.2500
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The GBP/USD pair remains steady around 1.2480 during Wednesday's Asian trading hours after experiencing losses in the prior session. Daily chart technical analysis suggests a weakening bearish trend, as the pair trades above the upper edge of a descending channel pattern.
However, bearish pressure persists, with the 14-day Relative Strength Index (RSI) staying below the 50 level. Additionally, the pair is trading below the nine- and 14-day Exponential Moving Averages (EMAs), signaling weak short-term momentum. A breakout above these EMAs could indicate a shift to a bullish trend.
On the downside, the pair may test the upper boundary near 1.2560, with a potential re-entry into the descending channel reinforcing the bearish outlook. Such a move could drive the pair toward the nine-month low of 1.2352 recorded on January 2, with the next support at 1.2299, the lowest since November 2023, last seen on April 22.
Resistance lies at the nine-day EMA at 1.2494 and the 14-day EMA at 1.2516. A successful breakout above these levels could strengthen short-term momentum, paving the way for a climb toward the two-month high of 1.2811 reached on December 6.
Paraphrasing text from "FXSTREET" all rights reserved by the original author.
