GBP/USD Price Outlook: Challenges 1.3450 support following a drop beneath the nine-day EMA

GBP/USD Holds Steady Amid Weaker Bullish Momentum

For the second day in a row, GBP/USD is trading quietly near 1.3460 during Wednesday’s Asian session. Analysis of the daily chart reveals that the pair’s bullish momentum is fading, as it now sits just below the lower edge of its upward channel.

The nine-day Exponential Moving Average (EMA) remains above the 50-day EMA, maintaining a generally positive outlook. GBP/USD is currently trading just under the short-term EMA but stays well above the medium-term trend line, indicating continued support for the prevailing trend. The 14-day Relative Strength Index (RSI) stands at 61.0, reflecting positive sentiment without entering overbought territory.

If the pair climbs back above the nine-day EMA at 1.3462, it could set its sights on the three-month peak of 1.3534, last seen on December 24. A daily close above this level may pave the way for a move toward the upper boundary of the ascending channel, near 1.3690.

Conversely, a drop below both the short-term EMA and the channel could bring the 50-day EMA at 1.3351 into play as initial support, potentially slowing further gains. Continued weakness might push GBP/USD down toward the eight-month low around 1.3010.

GBP/USD Daily Chart Overview

(This technical analysis was generated with assistance from an AI tool.)