GBP/USD Price Analysis: Slips below 1.3000, signaling a potential correction

• GBP/USD could further lose ground as the 14-day RSI hints at an impending correction.
• The pair could test the psychological resistance at the 1.3000 level.
• The immediate support is anticipated near the upper boundary of the ascending channel, around the 1.2900 level.

GBP/USD declines slightly, hovering around 1.2970 in Monday's Asian session after retreating from Friday's peak of 1.2990, the highest since July 2023. The analysis of the daily chart shows a breakout above an ascending channel, signaling a bullish trend in the pair's price movements.

Moreover, the Moving Average Convergence Divergence (MACD) indicator reflects short-term bullish momentum, with the MACD line above the centerline and diverging positively from the signal line.

However, the 14-day Relative Strength Index (RSI) sits marginally above the 70 level, confirming the bullish trend while also suggesting potential overbought conditions. A potential decline could indicate a weakening bullish sentiment, possibly hinting at an impending correction.

In terms of resistance, the GBP/USD pair could test the psychological level of 1.3000. A breakthrough above this level could provide support for the pair to explore the region around the key level of 1.3100.

On the downside, the immediate support appears around the upper boundary of the ascending channel at the 1.2900 level. A return to the ascending channel could contribute support for the pair to reach the nine-day Exponential Moving Average (EMA) at 1.2863.

A break below the nine-day EMA could lead the GBP/USD pair to test the lower boundary of the ascending channel at the level of 1.2770. Further support could be found around the throwback support level of 1.2615.

GBP/USD: Daily Chart