GBP/USD Price Forecast: Rebounds from levels near three-month lows, 1.3200
GBP/USD inches higher after four days of losses, trading around 1.3270 during the Asian hours on Monday. The technical analysis of the daily chart indicates a persistent bearish bias, as the pair remains within the descending channel pattern.
The near-term bias is mildly bearish as the GBP/USD pair holds below both the nine-day and 50-day Exponential Moving Averages (EMAs), which continue to cap recovery attempts and frame a declining short-term trend.
Additionally, the latest 14-day Relative Strength Index (RSI) reading near 41 stays below the 50 mid-line, confirming persistent downside momentum rather than exhaustion, while the sequence of lower closes over recent sessions reinforces selling pressure on upticks.
The GBP/USD pair may find immediate support near the three-month low of 1.3218, which was recorded on March 13, followed by the descending channel’s lower boundary around 1.3160.
On the upside, the GBP/USD pair may rise toward the primary barrier at the nine-day EMA of 1.3329. Further advances would lead the GBP/USD pair to test the 50-day EMA at 1.3424, followed by the upper descending channel boundary around 1.3460. A break above this confluence resistance zone would cause the emergence of the bullish bias and support the GBP/USD pair to explore the area around 1.3869, the highest since September 2021, reached on January 27.
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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