The GBP/USD pair posted modest gains near 1.2520 during the early European session on Friday. However, the major currency pair's gains seem limited amid subdued trading activity and growing expectations that the US Federal Reserve (Fed) will deliver fewer interest rate cuts next year.
According to the daily chart, the GBP/USD bearish outlook remains valid with the price holding the key 100-day Exponential Moving Average (EMA). The downside momentum is reinforced by the 14-day Relative Strength Index (RSI), which is located below the midline around 38.35, suggesting that further declines appear favorable.
The first downside target to watch is 1.2460, the lower boundary of the Bollinger Band. A breach of this level could lead to a drop to 1.2331, the low of April 23. The next level of contention is seen at 1.2187, the low of November 10.
On the upside, immediate resistance comes in at 1.2614, the high of December 20. Further north, the next hurdle is located at 1.2728, the high of December 17. The key upside barrier to watch is the 1.2810-1.2820 zone, which represents the 100-day EMA and the upper boundary of the Bollinger Band.
Source : FXStreet
