Categories: Markets

GBP/USD Price Analysis: Falls to fresh daily lows around the 1.2360 zone

GBP/USD Price Analysis: Falls to fresh daily lows around the 1.2360 zone
  • The GBP/USD pair was rejected from 1.2400 for the fifth day in a row, as traders brace for a busy schedule.
  • Monetary policy decisions by the US Federal Reserve and the Bank of England are looming and would keep investors at bay.
  • GBP/USD Price Analysis: Sideways, stuck in the 1.2340-1.2430 range.

The pair GBP/USD it lost ground in the American session, before a busy week on the world economic agenda, in which the main central banks will make monetary policy decisions. The US Federal Reserve (Fed) is expected to raise rates by 25 basis points, while the Bank of England (BoE) would probably raise rates by 50 basis points, and analysts estimate that after the decision to February, the BoE would pause. At the time of writing, GBP/USD is trading at 1.2367.

GBP/USD Price Analysis: Technical Perspective

Consolidation is the name of the game in case GBP/USD fails to break above/below the 1.2430/1.2344 top/bottom. Even though it is dipping to fresh daily lows at 1.2367, it would remain range bound in the aforementioned zone. However, GBP/USD is approaching a supportive 13-day uptrend line, which, once breached, GBP/USD could drop as low as 1.2300, followed by the 20-day EMA at 1.2277.

As an alternative scenario, if GBP/USD recovers to 1.2400, then GBP/USD could rally towards the 1.2500 area, but on its way north, it would have to face the December 14 high at 1.2446.

Oscillators such as the Relative Strength Index (RSI) and the Rate of Change (RoC) suggest further declines are in store.

GBP/USD Key Technical Levels

GBP/USD

Overview
Last price today 1.2358
Today Change Daily -0.0033
today’s daily variation -0.27
today’s daily opening 1.2391
Trends
daily SMA20 1.2226
daily SMA50 1.2163
daily SMA100 1.1766
daily SMA200 1.1963
levels
previous daily high 1.2419
previous daily low 1.2346
Previous Weekly High 1.2448
previous weekly low 1.2263
Previous Monthly High 1.2447
Previous monthly minimum 1.1992
Fibonacci daily 38.2 1.2374
Fibonacci 61.8% daily 1.2391
Daily Pivot Point S1 1.2351
Daily Pivot Point S2 1.2312
Daily Pivot Point S3 1.2278
Daily Pivot Point R1 1.2425
Daily Pivot Point R2 1.2459
Daily Pivot Point R3 1.2498

Source: Fx Street