- GBP/USD trades with mild gains around 1.2520 in Friday’s early European session.
- The negative outlook of the pair remains intact below the 100-day EMA with the bearish RSI indicator.
- The initial support level emerges at 1.2460; the first upside barrier is seen at 1.2614.
The GBP/USD pair posts modest gains to near 1.2520 during the early European session on Friday. Nonetheless, the upside of the major pair seems limited amid thin trading activity and the rising expectation that the US Federal Reserve (Fed) will deliver fewer rate cuts next year.
According to the daily chart, the bearish outlook of GBP/USD remains in play with the price holding the key 100-day Exponential Moving Average (EMA). The downward momentum is reinforced by the 14-day Relative Strength Index (RSI), which is located below the midline around 38.35, indicating that further downside looks favorable.
The first downside target to watch is 1.2460, the lower limit of the Bollinger Band. A breach of this level could see a drop to 1.2331, the low of April 23. The next contention level is seen at 1.2187, the low of November 10.
On the bright side, the immediate resistance level emerges at 1.2614, the high of December 20. Further north, the next hurdle is located at 1.2728, the high of December 17. The crucial upside barrier to watch is the 1.2810-1.2820 zone, representing the 100-day EMA and the upper boundary of the Bollinger Band
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