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GBP/USD Price Analysis: Advancing near 1.2550 with expectations of a change in momentum

  • GBP/USD gains ground as technical indicators suggest a change in momentum for the pair.
  • The Momentum indicator could confirm a weakening of the bearish bias once it breaks above the center line.
  • The pair could find the immediate barrier at the upper boundary of the descending channel around the level of 1.2570.

GBP/USD extends its gains for the second consecutive session on Thursday, trading around 1.2530 during the Asian session. The pair is consolidating within the descending channel on the daily chart, with the 14-day Relative Strength Index (RSI) positioning at level 50. A new increase would indicate the weakening of a bearish bias.

Furthermore, the Moving Average Convergence Divergence (MACD) indicates a change in momentum as it sits above the signal line but below the center line. This momentum indicator could confirm the weakening of the downtrend once it breaks above the center line.

GBP/USD could test the immediate pullback support at the 1.2518 level, followed by the nine-day EMA at 1.2504 and the psychological level of 1.2500. A break below this level could pressure the pair to navigate the region around the six-month low of 1.2300, followed by the lower boundary of the descending channel around the 1.2240 level.

To the upside, immediate resistance appears at the upper boundary of the descending channel around 1.2570, followed by the 50% retracement level at 1.2597, drawn between the range of 1.2894 and 1. ,2300.

A break above the latter could support the GBP/USD pair to explore the area around the retracement resistance at the 1.2710 level.

GBP/USD: Daily Chart

GBP/USD

Panorama
Today's Latest Price 1.2541
Today's Daily Change 0.0015
Today's Daily Change % 0.12
Today's Daily Opening 1.2526
Trends
20 Daily SMA 1.2507
SMA of 50 Daily 1.2618
SMA of 100 Daily 1.2648
SMA of 200 Daily 1.2551
Levels
Previous Daily High 1,255
Previous Daily Low 1.2466
Previous Weekly High 1.2542
Previous Weekly Low 1.23
Previous Monthly High 1.2709
Previous Monthly Low 1.23
Daily Fibonacci 38.2% 1.2518
Daily Fibonacci 61.8% 1.2498
Daily Pivot Point S1 1.2479
Daily Pivot Point S2 1.2431
Daily Pivot Point S3 1.2395
Daily Pivot Point R1 1.2562
Daily Pivot Point R2 1.2598
Daily Pivot Point R3 1.2646

Source: Fx Street

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