The GBP/USD pair is trading with modest gains around 1.2445 during the early European trading hours on Thursday (1/30). A modest pullback in the greenback is providing some support to the major currency pair. Investors will be looking closely at the US Gross Domestic Product (GDP) data for the fourth quarter (Q4), due on Thursday. In addition, weekly Initial Jobless Claims and Pending Home Sales will be published.
According to the daily chart, the bearish outlook for GBP/USD remains intact, with the price holding below the important 100-day Exponential Moving Average (EMA). However, the 14-day Relative Strength Index (RSI) is hovering around the midline, indicating that consolidation cannot be ruled out.
The initial support level for the major currency pair emerges in the 1.2400-1.2390 zone, which represents the psychological level and the low of January 29. A breach of this level could lead to a drop to 1.2307, the low of January 22. Additional downside filters to watch are 1.2160, the low of January 20, followed by 1.2125, the lower boundary of the Bollinger Band.
On the upside, the immediate resistance level is located at 1.2570, the upper boundary of the Bollinger Band. Further north, the next hurdle is seen at 1.2645, the 100-day EMA. The next upside barrier to watch is 1.2778, the high of December 10.(AL)
Source: FXstreet
