GBP/USD extended its losses for the third consecutive session, trading around 1.3380 during early European hours on Thursday, March 12, 2024 [1]. The pair remains below both the declining nine-day Exponential Moving Average (EMA) and the flatter 50-day EMA, indicating fading upside momentum after being rejected from the mid-1.36s [1]. Technical analysis of the daily chart reinforces a bearish bias, as GBP/USD pulled back from the upper boundary of a descending channel pattern. The 14-day Relative Strength Index (RSI) is just below 40, confirming persistent downside pressure and a sequence of lower daily highs, but not yet signaling oversold conditions [1].
Key support levels are identified at the three-month low of 1.3253, recorded on December 3, with further declines potentially targeting the descending channel’s lower boundary around 1.3140 and the 11-month low at 1.3010 [1]. On the upside, immediate resistance is at the nine-day EMA at 1.3414, aligned with the upper boundary of the descending channel. A move above this level could shift the bias to bullish and allow GBP/USD to test the 50-day EMA at 1.3482, with further momentum possibly leading to the 1.3869 region, the highest since September 2021, reached on January 27 [1].
The British Pound was the weakest against the Canadian Dollar among major currencies today, as shown in the percentage change table. GBP declined by 0.20% against USD, 0.07% against EUR, 0.26% against GBP itself, 0.27% against JPY, and only gained 0.10% against CAD [1]. This heat map underscores the broad weakness of GBP across most major pairs, with the exception of a slight gain versus CAD [1].
No forward-looking statements or analyst opinions are provided beyond the technical analysis, which suggests continued downside pressure unless key resistance levels are breached [1].
CONCLUSION
GBP/USD is experiencing sustained bearish momentum, trading below key moving averages and support levels, with technical indicators pointing to further downside risk. The British Pound is broadly weaker against most major currencies, except for a slight gain versus the Canadian Dollar. Market sentiment remains negative, and unless resistance levels are overcome, the pair may continue to explore lower support regions.