GBP/USD could test the immediate barrier at a nine-day EMA of 1.2767 level and the upper boundary around 1.2800 level. The technical analysis of a daily chart suggests a bearish bias for the pair, with the lower edge of the descending channel around the level of 1.2650 acting as key support.
GBP/USD is currently trading around 1.2760 during the Asian session on Monday, consolidating within a descending channel. The Moving Average Convergence Divergence (MACD) indicator indicates bearish momentum, while the 14-day Relative Strength Index (RSI) remains below 50, reinforcing the bearish outlook.
Resistance levels for GBP/USD include an immediate barrier at the nine-day EMA of 1.2767 and the upper boundary at 1.2800. A breakout above these levels could push the pair towards the yearly peak of 1.3044 reached on July 17. On the downside, key support lies at the lower edge of the descending channel around 1.2650, with a break below potentially leading to a drop to 1.2615.
Analysis:
The GBP/USD pair is currently in a consolidation phase within a descending channel, indicating a bearish bias. Technical indicators such as the MACD and RSI further support this bearish outlook. Traders should watch for a breakout above the resistance levels at 1.2767 and 1.2800 for a potential bullish move towards 1.3044. Conversely, a break below the support at 1.2650 could lead to further downside towards 1.2615.