- December 31, 2025
- Posted by: EWGFX
- Category: news
GBP/USD may rebound above the nine-day EMA of 1.3462.
The 14-day Relative Strength Index remains positive at 61.0 and is not overbought.
Further declines would open the way toward the 50-day EMA at 1.3351.
BP/USD remains subdued for the second consecutive day, trading around 1.3460 during the Asian hours on Wednesday. The technical analysis of the daily chart indicates a weakening of a bullish bias as the pair is positioned slightly below the lower boundary of the ascending channel pattern.
The nine-day Exponential Moving Average (EMA) trends above the 50-day EMA, preserving a bullish bias. The GBP/USD pair hovers just beneath the short-term average while holding well above the rising medium-term average, signaling ongoing trend support. Additionally, the 14-day Relative Strength Index (RSI) at 61.0 stays positive and is not overbought.
A rebound above the nine-day EMA of 1.3462 would lead the GBP/USD pair to target the three-month high of 1.3534, reached on December 24. A daily close above 1.3534 could open a move toward the upper boundary of the ascending channel around 1.3690.
A pullback below the short-term average and the channel would expose the 50-day EMA at 1.3351 as first trend support and temper upside momentum. Further declines would put downward pressure on the GBP/USD pair to navigate the region around the eight-month low of 1.3010.