GBP/USD Rebounds to 1.2350 After Testing Nine-Month Lows
Image Credit: FXSTREET
The GBP/USD pair continues to face downward pressure for the third consecutive day, trading around 1.2360 during Thursday's Asian session. Technical analysis of the daily chart shows a bearish trend, with the pair falling back into a descending channel pattern.
The 14-day Relative Strength Index (RSI) is nearing the 30 level, indicating strengthening bearish momentum. Additionally, the GBP/USD pair is trading below both the nine- and 14-day Exponential Moving Averages (EMAs), signaling weak short-term price dynamics.
On the downside, the GBP/USD pair may test the nine-month low of 1.2321, recorded on January 8, followed by the next support at 1.2299, the lowest level since November 2023, last seen on April 22.
A drop below this support could deepen the bearish outlook, potentially driving the pair toward the lower boundary of the descending channel near 1.2050.
On the upside, resistance is expected at the upper boundary of the descending channel near the nine-day EMA at 1.2447, followed by the 14-day EMA at 1.2481.
A break above these resistance levels could boost short-term momentum, opening the door for a possible rise toward the two-month high of 1.2811 reached on December 6.
Paraphrasing text from "FXSTREET" all rights reserved by the original author.
