GBP/USD Remains Below 1.2250 Level Near Nine-Day EMA |
The GBP/USD pair remained subdued for the second straight day, trading near 1.2230 levels during the Asian session on Friday (17/1). However, the daily chart technical analysis suggests a persistent bearish bias, with the pair continuing to move within a descending channel pattern.
The 14-day Relative Strength Index (RSI) is just above the 30-level, indicating an increase in bearish momentum. Moreover, the pair remains below the nine- and 14-day Exponential Moving Averages (EMAs), signaling weak near-term price dynamics and reinforcing the downtrend. On the downside, the GBP/USD pair could move around the psychological level of 1.2100, which is in line with the 14-month low of 1.2099, recorded on January 13. A break below this level could reinforce the bearish bias, potentially pushing the pair towards the lower boundary of the descending channel near 1.1950.
The GBP/USD pair may face immediate resistance at the nine-day EMA at 1.2278, followed by the 14-day EMA at 1.2328. A decisive break above these levels could boost the near-term price momentum, paving the way for a potential move towards the upper boundary of the descending channel at 1.2500 levels. (AL)
Source: FXstreet
