The GBP/USD saw a slight uptick after facing four days of declines, trading around 1.3270 during Monday’s Asian session. From a technical standpoint, the daily chart indicates a persistent bearish trend as the pair remains confined within a descending channel.
In the short term, the outlook leans bearish since GBP/USD is trading below the 9-day and 50-day exponential moving averages (EMAs). These EMAs seem to limit any attempts at recovery, contributing to a downward trajectory.
The Relative Strength Index (RSI) for the past 14 days has hovered around 41, sitting below the midline of 50, suggesting ongoing downward momentum rather than any signs of reversal. This recent streak of lower closes has added to the selling pressure from above.
Immediate support for GBP/USD is likely near the three-month low of 1.3218, which was reached on March 13, with further support at the lower boundary of the descending channel, estimated around 1.3160.
On the upside, if GBP/USD advances, it may encounter significant resistance at the 9-day EMA, currently at 1.3329. Looking ahead, the pair will be tested against the 50-day EMA at 1.3424, and then towards the boundary of the descending channel around 1.3460. A breakout beyond this cluster of resistance could shift the sentiment to bullish, allowing GBP/USD to target the area of 1.3869, its highest level since January 27, 2021.
(The technical analysis in this story was composed using AI tools.)
