- 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
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
