GBP/USD posts modest gains near 1.2445 in Thursday’s early European session.
The pair keeps the negative outlook below the 100-day EMA with the bearish RSI indicator.
The first downside target emerges at the 1.2400-1.2390 region; the upside barrier is located at 1.2570.
The GBP/USD pair trades with mild gains around 1.2445 during the early European trading hours on Thursday. A modest decline in the Greenback provides some support to the major pair. Investors will closely watch the advance US Gross Domestic Product (GDP) data for the fourth quarter (Q4), which is due later on Thursday. Also, the weekly Initial Jobless Claims and Pending Home Sales will be published.
According to the daily chart, the bearish outlook of GBP/USD remains in place, with the price holding below the key 100-day Exponential Moving Average (EMA). However, the 14-day Relative Strength Index (RSI) hovers around the midline, indicating that the consolidation cannot be ruled out.
The initial support level for the major pair emerges in the 1.2400-1.2390 zone, representing the psychological level and the low of January 29. A breach of this level could see a drop to 1.2307, the low of January 22. The additional downside filter to watch is 1.2160, the low of January 20, followed by 1.2125, the lower limit of the Bollinger Band.
On the bright side, the immediate resistance level is located at 1.2570, the upper boundary of the Bollinger Band. Further north, the next hurdle is seen at 1.2645, the 100-day EMA. The next upside barrier to watch is 1.2778, the high of December 10.
GBP/USD daily chart
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