GBP/USD Price Forecast: Holds above nine-day EMA near 1.3450

GBP/USD edges higher on the first day of the year, trading around 1.3470 during the Asian hours on Friday. The technical analysis of the daily chart indicates a weakening of a bullish bias as the pair remains slightly below the lower boundary of the ascending channel pattern.

The nine-day Exponential Moving Average (EMA) rises and stands above the 50-day EMA, with spot holding over both and maintaining a bullish bias. The 50-day EMA slope is positive, supporting the uptrend. Short-term trend dynamics remain supportive as the nine-day EMA continues to lead the 50-day EMA, and price respects the former on pullbacks. The moving average configuration would keep the topside favored while the medium-term average edges higher.

The 14-day Relative Strength Index (RSI) at 62.76 (bullish) confirms firm momentum without overbought conditions. RSI around 62.76 stays above its midline, reinforcing bullish bias and leaving scope for further gains.

A return to the ascending channel would support the GBP/USD pair to test the three-month high of 1.3534, reached on December 24. A daily close above this level could open a move toward the six-month high of 1.3726, followed by the upper boundary of the ascending channel around 1.3750.

A failure to rebound within the channel could prompt consolidation, but only a break below the nine- and 50-day EMAs of 1.3468 and 1.3362 supports, respectively, would undermine the short- and medium-term advance. Further declines would put downward pressure on the GBP/USD pair to navigate the region around the eight-month low of 1.3010.

(The technical analysis of this story was written with the help of an AI tool.)