- GBP/USD faces challenges as it is confined within a descending channel pattern.
- The pair could test its initial resistance at the nine-day EMA of 1.2278 level.
- The primary support appears at the psychological level of 1.2100, aligned with the 14-month low at 1.2099.
The GBP/USD pair remains subdued for the second successive day, trading near 1.2230 during the Asian session on Friday. However, technical analysis of the daily chart suggests a persistent bearish bias, with the pair continuing to move within a descending channel pattern.
The 14-day Relative Strength Index (RSI) sits just above the 30 level, indicating increased bearish momentum. Moreover, the pair remains below the nine- and 14-day Exponential Moving Averages (EMAs), signaling weak short-term price dynamics and reinforcing the downward trend.
On the downside, the GBP/USD pair could navigate the region around the psychological level of 1.2100, aligned with the 14-month low at 1.2099, recorded on January 13. A break below this level could strengthen the bearish bias, potentially driving the pair toward the lower boundary of the descending channel near 1.1950.
The GBP/USD pair may encounter immediate resistance at the nine-day EMA at 1.2278, followed by the 14-day EMA at 1.2328. A decisive breakout above these levels could enhance short-term price momentum, paving the way for a potential move toward the descending channel’s upper boundary at the 1.2500 level.
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