The GBP/USD has seen declines for four days straight, hovering around 1.3600 during European trading hours on Friday. A look at the daily chart suggests the bullish trend remains intact as the pair moves within an ascending channel.
The 14-day Relative Strength Index (RSI), which reflects momentum, stands at 51. This indicates a neutral stance after previously being overbought. An RSI close to 50 hints at a range-bound market. If it surpasses 60, we could see a stronger upward movement.
The 50-day exponential moving average (EMA) is trending upward, which supports a broader rally, while the 9-day EMA is capping short-term gains. Currently, the price is below the 9-day EMA but above the 50-day EMA. If the daily closing price moves above the 9-day EMA, bullish pressure will likely intensify. Conversely, failing to reclaim this short-term average might weaken the uptrend, potentially leading to a period of consolidation.
The GBP/USD pair is testing the lower boundary of the ascending channel near 1.3580, with the 50-day EMA at 1.3524 looming ahead. A further dip could increase downward pressure on the pair and challenge the support zone around 1.3350.
On the upside, an immediate obstacle is seen at the nine-day EMA at 1.3632, followed by 1.3869, the highest level since January 27, 2021. Progressing further could allow the GBP/USD to approach the upper limit of the ascending channel, roughly around 1.4150, and then 1.4248, which hasn’t been seen since April 2018.
GBP/USD: daily chart
