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GBP/USD Price Analysis: Limited below 1.2400, focus on central bank decisions

  • GBP/USD has been limited below 1.2400 on Monday.
  • Momentum indicators signal possible bearish momentum in GBP/USD.
  • Immediate support appears around the June lows, followed by the psychological level of 1.2350.

GBP/USD appeared to break a two-day losing streak early in the day, but later turned lower and fell towards 1.2370 at the start of the European session on Monday.

Investors expect the Bank of England (BoE) to raise interest rates by 25 basis points at its next meeting on Thursday. On the other hand, the United States Federal Reserve (Fed) is expected to maintain its current interest rate on Wednesday.

Technically, GBP/USD could face a challenge around the 9-day EMA at 1.2463, followed by the 12-day EMA at 1.2488 level.

A break above the psychological level of 1.2500 could lead the pair to explore the 23.6% Fibonacci retracement zone at 1.2560.

On the other hand, immediate support for the GBP/USD pair appears around the June lows at 1.2368, followed by the psychological level of 1.2350.

If the bearish sentiment puts pressure, the pair could approach the next support level near the lows seen in May at 1.2308, followed by the round level of 1.2300.

The MACD line remains below the center line and shows divergence below the signal line. This setup suggests possible bearish momentum in the market, which can be considered as a sign that the recent downtrend may continue.

GBP/USD traders will likely watch the 14-day Relative Strength Index (RSI), which indicates short-term bearish momentum, as it is below the 50 level.

GBP/USD daily chart


GBP/USD additional technical levels

Latest price today 1.2388
Today I change daily 0.0005
Today’s daily variation 0.04
Today’s daily opening 1.2383
daily SMA20 1.2577
daily SMA50 1.2733
SMA100 daily 1.2654
SMA200 daily 1.2433
Previous daily high 1.2446
Previous daily low 1.2379
Previous weekly high 1.2548
Previous weekly low 1.2379
Previous Monthly High 1.2841
Previous monthly low 1.2548
Daily Fibonacci 38.2 1.2405
Fibonacci 61.8% daily 1,242
Daily Pivot Point S1 1.2359
Daily Pivot Point S2 1.2336
Daily Pivot Point S3 1.2292
Daily Pivot Point R1 1.2426
Daily Pivot Point R2 1,247
Daily Pivot Point R3 1.2494

Source: Fx Street

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