GBP/USD extends its decline for a second consecutive session, trading around the 1.3420 area during Asian hours on Monday. Technical signals on the daily chart suggest that bullish momentum is cooling but not yet reversing. The 14-day Relative Strength Index eases to around 53 from near overbought territory, indicating a moderation in upside momentum while remaining above the 50 midline, which keeps a modest bullish bias intact.
The nine-day Exponential Moving Average remains above the 50-day EMA, preserving the broader bullish structure despite the recent pullback. Price action has slipped below the short-term EMA but continues to hold above the rising 50-day EMA, pointing to a shallow corrective move within an established uptrend. The flattening of the nine-day EMA signals a pause in near-term momentum, while the upward-sloping 50-day EMA continues to underpin the medium-term advance.
Key resistance levels remain in focus
On the upside, the immediate hurdle is located at the nine-day EMA near 1.3455. A daily close back above this level would likely restore bullish control and allow the pair to retest the three-month high at 1.3534, recorded on December 24. A sustained break above this zone could open the door toward the six-month peak at 1.3726, followed by 1.3788, the highest level seen since October 2021.
Support near 1.3400 and 50-day EMA
On the downside, GBP/USD is drifting toward the psychological 1.3400 handle, with the next key support aligned at the 50-day EMA around 1.3363. A decisive break below this medium-term support would weaken the broader technical outlook and increase downside pressure, potentially exposing the pair to a deeper decline toward the eight-month low near 1.3010.
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