GBP/USD Price Analysis: Consolidates around 1.2680 with a tepid momentum

• GBP/USD struggles to find a positive direction after registered losses in the recent sessions.
• Traders may exercise caution and wait for MACD to give a direction confirmation.
• The pair could find a support zone around the 23.6% Fibonacci retracement and 50-day EMA.

GBP/USD grapples to find a direction, hovering around 1.2680 during the Asian session on Thursday. The technical analysis of the GBP/USD pair shows that the 14-day Relative Strength Index (RSI) is positioned below 50. This indicates a bearish momentum for the pair.

Furthermore, the Moving Average Convergence Divergence (MACD), a lagging indicator, indicates a subdued momentum for the pair. This is evident from the MACD line being situated above the centerline but below the signal line. Traders are advised to exercise caution and consider waiting for direction confirmation from the MACD before engaging in aggressive bets on the GBP/USD pair.

The GBP/USD pair may encounter support at the significant level of 1.2650, coinciding with the 23.6% Fibonacci retracement at 1.2648 and the 50-day Exponential Moving Average (EMA) at 1.2645. This zone represents an immediate support area, and breaching it could potentially guide the pair toward the vicinity of the psychological support at the 1.2600 level. A dip below this psychological support might lead the pair towards the 38.2% Fibonacci retracement level at 1.2532.

Regarding potential upward movements, the immediate resistance for the GBP/USD pair is seen at the psychological level of 1.2700, followed by the weekly high situated at the major resistance level of 1.2750. A successful breakthrough above this significant barrier could prompt the pair to reconsider the January high at 1.2785, with further potential gains toward the psychological level at 1.2800.

GBP/USD: Daily Chart