

Market Analysis
GBP/USD is continuing its upward momentum for the second consecutive day, trading around 1.2530 in the Asian session. The pair is consolidating within a descending channel on the daily chart, with the 14-day Relative Strength Index (RSI) hovering around the 50-level, indicating a potential weakening of the bearish trend.
Furthermore, the Moving Average Convergence Divergence (MACD) suggests a shift in momentum, currently positioned above the signal line but below the centerline. A break above the centerline could confirm the diminishing bearish bias.
In terms of support levels, GBP/USD might find immediate backing at 1.2518, followed by the nine-day Exponential Moving Average (EMA) at 1.2504 and the psychological level of 1.2500. A breach below this level could drive the pair towards the six-month low of 1.2300, and subsequently towards the lower boundary of the descending channel near 1.2240.
On the upside, resistance is anticipated at the upper boundary of the descending channel around 1.2570, followed by the 50% retracement level at 1.2597, derived from the range between 1.2894 and 1.2300.
A breakthrough above this level could propel GBP/USD towards the pullback resistance at 1.2710.
GBPUSD: Daily Chart
GBP/USD
Paraphrasing text from "FX Street" all rights reserved by the original author.