GBP/USD Price Analysis: Creeps below the 100-day EMA but struggles to crack 1.2000

• GBP/USD is dropping 0.20% on Thursdays as bears eye 1.2000.
• On its way down, the GBP/USD fell below the 100-day EMA, which exacerbated a test of 1.1991.

The GBP/USD tumbles below the 100-day Exponential Moving Average (EMA) as Wall Street prepares for Thursday’s close, with decent gains on a risk-on impulse. In the FX space, the US Dollar (USD) exerts pressure on most G8 currency pairs, particularly the Pound Sterling (GBP). At the time of writing, the GBP/USD is trading at 1.2018, below its opening price.

After hitting a daily high of 1.2074, the GBP/USD retreated and broke below 1.2036, the 100-day EMA, on its way to the day’s lows at 1.1991. However, the GBP/USD recovered some ground and reclaimed the 1.2000 figure as the US Dollar softened.

From a daily chart perspective, the GBP/USD is neutral to downward biased, with all the long-term EMAs resting above the spot price. In addition, the Relative Strength Index (RSI) at bearish territory aims south, indicating that sellers are gathering momentum. Therefore, GBP/USD downside is expected.

If the GBP/USD falls below the 1.2000 figure, the next support would be the weekly low of 1.1985. A breach of the latter will expose a support trendline that passes around the February 14 low of 1.1914. That will set the stage for GBP/USD sellers to regain 1.1900.

As an alternate scenario, once the GBP/USD reclaims the 100-day EMA at 1.2036, that would open the door toward 1.2100, where the 20 and 100-day EMAs lie. A rally beyond that supply area and the 200-day EMA will be up for grabs at 1.2129.

GBP/USD Daily chart

GBP/USD Key technical levels