- GBP/USD sits below the nine-day EMA but above the 50-day EMA, straddling short- and medium-term trends.
- The 14-day Relative Strength Index at 51.9 is neutral, indicating easing momentum after recent strength.
- Staying above the 50-day line would maintain the positive bias and provide support on pullbacks.
GBP/USD remains subdued for the fourth consecutive day, trading around 1.3430 during the Asian hours on Friday. The momentum indicator 14-day Relative Strength Index (RSI) at 51.9 is neutral, reflecting slower momentum after firm recent readings. An RSI drop back beneath 50 would strengthen the case for a deeper pullback.
The GBP/USD pair straddles the short-term and medium-term trend filters, sitting below the nine-day Exponential Moving Average (EMA) but above the 50-day EMA. The nine-day average remains above the 50-day EMA, yet its recent rollover caps upside traction.
The initial support lies at the 50-day EMA of at 1.3381. A daily close under the medium-term average would shift focus toward the eight-month low of 1.3010. Holding above the 50-day line would preserve the underlying positive tone and keep dips supported.
A break through the nine-day EMA at 1.3464 would expose the three-month high of 1.3562 as the next barrier. A daily close back over this confluence resistance zone could reassert the topside bias. Further advances would lead the GBP/USD pair to explore the region around the six-month high of 1.3726, followed by the 1.3788, the highest level since October 2021.
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