- GBP/USD registers some decent losses after failing to climb above 1.2200.
- For the GBP/USD to extend its gains, it needs to reclaim 1.2200, to pose a challenge of 1.2300.
The Pound Sterling (GBP) trims some of its Monday gains vs. the US Dollar (USD), drops below 1.2200, and aims toward the 1.2150 area after hitting a daily high at around 1.2197. Hence, the GBP/USD falls 0.17% and is trading at 1.2161.
GBP/USD Price Analysis: Technical outlook
On Tuesday, the GBP/USD is edging toward the 200-day Exponential Moving Average (EMA) at 1.2107 after failing to decisively crack the 1.2200 figure. Oscillators like the Relative Strength Index (RSI) and the Rate of Change (RoC) suggest that buying pressure is easing. So, chances of the GBP/USD’s testing the 200-day EMA, albeit slim, remain.
For that scenario to play out, the GBP/USD needs further to extend its losses and clear the 200-day EMA. Once done, the next hurdle would be 1.2100, followed by the 20-day EMA at 1.2074, and then the 1.2000 mark.
Otherwise, if the GBP/USD turns positive, the first resistance would be the 1.2200 mark. A breach of the latter will expose the December 19 daily high of 1.2242, followed by the 1.2300 mark.
GBP/USD Key Technical Levels