GBP/USD Price Forecast: Hovers below nine-day EMA near 1.2500

• GBP/USD could test the upper boundary around the 1.2560 level to re-enter into the descending channel.
• The 14-day RSI stays below the 50 level, indicating sustained bearish pressure.
• The initial resistance appears at its nine-day EMA at 1.2494 level.

The GBP/USD pair maintains its position after registering losses in the previous session, hovering around 1.2480 during Wednesday's Asian hours. Technical analysis on the daily chart points to a weakening bearish trend, as the pair is trading above the upper boundary of a descending channel pattern.

Despite this, the 14-day Relative Strength Index (RSI) remains below the 50 level, signaling continued bearish pressure. Furthermore, the pair is positioned below both the nine- and 14-day Exponential Moving Averages (EMAs), indicating weak short-term price momentum. A clear breakout above these EMAs could signal a shift from a bearish to a bullish outlook.

On the downside, GBP/USD could test the upper boundary near the 1.2560 level, potentially re-entering the descending channel. A reversal into the channel would reinforce the bearish bias, possibly driving the pair toward the nine-month low of 1.2352, recorded on January 2. The next support level is at 1.2299, the lowest since November 2023, last seen on April 22.

The GBP/USD pair faces immediate resistance at its nine-day Exponential Moving Average (EMA) at 1.2494, followed by the 14-day EMA at 1.2516. A successful breakout above these levels could boost short-term price momentum, opening the door for a move toward the two-month high of 1.2811, reached on December 6.

GBP/USD: Daily Chart