- GBP/USD posts some losses after failing to rise above 1.2200.
- For the pair to extend its gains, it needs to recover 1.2200, to challenge 1.2300.
The British pound (GBP) pared some of its Monday gains against the US dollar (USD), falling below 1.2200, and points towards the 1.2150 area after reaching a daily high around 1.2197. Thus, the GBP/USD pair falls 0.17% and trades at 1.2161.
GBP/USD Price Analysis: Technical Perspective
The GBP/USD pair is approaching the 200-day EMA at 1.2107 on Tuesday after failing to decisively break above 1.2200. Oscillators such as the Relative Strength Index (RSI) and the Rate of Change (RoC) suggest that buying pressure is easing. Therefore, although slim, there is still a chance that GBP/USD will test the 200 day EMA.
For this scenario to play out, GBP/USD needs to extend its losses further and break above the 200 day EMA. With that done, the next hurdle would be 1.2100, followed by the 20-day EMA at 1.2074, and then the 1.2000 area.
Otherwise, if GBP/USD turns positive, the first resistance would be 1.2200. If this last level is broken, the daily high of December 19 will be reached at 1.2242, followed by 1.2300.
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.
