GBP/USD Price Forecast: Targets 1.3500 barrier near moving averages

GBP/USD rebounds from the daily losses, trading around 1.3450 during the Asian hours on Monday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

The 14-day Relative Strength Index (RSI), a momentum indicator, is at 40 points to sustained bearish pressure without oversold conditions, suggesting sellers retain control but lack capitulation extremes.

The near-term bias is mildly bearish as spot holds below the nine-day Exponential Moving Average (EMA) and slides toward the flatter 50-day average, indicating fading upside momentum.

The initial support lies at the reversal zone around 1.3350. The proximity to the 50-day EMA could attract dip-buying interest toward the descending channel around 1.3140, followed by the 10-month low at 1.3010.

On the upside, the immediate barrier is seen at the nine-day EMA at 1.3504, followed by the 50-day EMA at 1.3518. A break above these averages would improve the momentum and expose the upper descending channel boundary around 1.3630. Further advances above the channel would cause the emergence of the bullish bias and support the GBP/USD pair to test the 1.3869, the highest since September 2021, reached on January 27.

(The technical analysis of this story was written with the help of an AI tool.)