GBP/USD remains subdued for a second consecutive day, trading around 1.3460 during Asian hours on Wednesday. Daily chart analysis shows a weakening bullish bias, with the pair positioned just below the lower boundary of the ascending channel pattern.
The nine-day exponential moving average (EMA) stays above the 50-day EMA, maintaining a medium-term bullish outlook. The pair hovers slightly under the short-term average while remaining well above the rising medium-term average, indicating continued trend support. The 14-day Relative Strength Index (RSI) at 61.0 remains positive and shows no signs of overbought conditions.
rebound above nine-day EMA could target three-month highs
A move above the nine-day EMA at 1.3462 would position GBP/USD to retest the three-month high of 1.3534, reached on December 24. A daily close above 1.3534 could pave the way for a potential advance toward the upper boundary of the ascending channel near 1.3690.
downside risk emerges below short-term average
A pullback below the short-term EMA and the channel would bring the 50-day EMA at 1.3351 into focus as the first support level, potentially limiting upside momentum. Further declines could push GBP/USD toward the eight-month low near 1.3010, increasing downward pressure on the pair.
Ready to start trading Forex? Join iXBroker today and kick-start your trading journey now!
