GBPUSD is trading close to 1.2750, a significant threshold.
A four-day winning streak for GBPUSD is broken as the pair trades lower on Tuesday morning in the early European session, close around 1.2750. The GBPUSD pair is at a turning point, and more downside pressure could materialize. Moreover If there is a breach below the key barrier. You should keep an eye on the 21-day Exponential Moving Average (EMA), which is currently at 1.2684.
GBPUSD Technical Outlook
The key level at 1.2650 is the next apparent support. With the 21-day EMA at 1.2684 acting as an immediate one.
Furthermore Investor caution is suggested by the lagging indicator MACD.
If the 21-day EMA is broken below, there may be more selling pressure. And the pair may then move closer to the main stability at 1.2650. This level gives the support zone additional technical significance as it is in line with the 23.6% Fibonacci retracement at 1.2643.
Moreover Being above the 50 mark on the 14-day Relative Strength Index (RSI) is a sign of good momentum for the GBPUSD pair. An RSI above 50 is usually indicative of strong buying pressure and supports the idea that the pair is headed higher.
Furthermore, the Moving Average Convergence Divergence (MACD) indicator offers. Additional insightful information. The bullish indication of the MACD line’s position above the centerline indicates the possibility of upward momentum. On the other hand, convergence below the signal line can suggest that investors are being a little cautious.
Moreover The GBPUSD pair may rise to its high from the previous week at 1.2771. If the latter is broken, the GBPUSD pair may be able to move into the area surrounding the psychological level. At 1.2800 and the high point of December, at 1.2827.
