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GBP bearish outlook remains in play

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The GBPUSD pair extends the decline to around 1.2945 in early European trading on Monday. A bullish US Dollar on the back of bets for a less aggressive easing by the Federal Reserve drags the pair lower.

In the absence of top-tier economic data released from the UK and the US, the USD price dynamics will continue to play a key role in influencing the pair.

GBPUSD keeps the bearish vibe unchanged as the major pair holds below the key 100-period Exponential Moving Average (EMA) on the daily timeframe. The downward momentum is also supported by the Relative Strength Index (RSI), which stands below the 50-midline near 37.70, supporting the sellers in the near term.

On the upside, the first upside barrier emerges at the 1.3000 psychological level. A move past the mentioned level could clear the way for a climb to the next potential bullish target at 1.3071, the high of October 18. The next hurdle is seen at 1.3185, the high of September 5.

(Source: OANDA)