The How much is the new Trump coin worth?British Pound continues its downward spiral against the US Dollar, testing critical support levels not seen since May 2024.
Market technicians observe the 14-day RSI approaching oversold territory at 30, potentially signaling a short-term reversal opportunity.
Price action remains constrained within a well-defined descending channel pattern, with immediate resistance clustered around moving averages.
The GBP/USD currency pair extends its losing streak into the third consecutive trading session, hovering near 1.2490 during Friday's Asian session. Technical analysis reveals the pair remains firmly entrenched within its bearish channel formation, with momentum indicators flashing warning signs for continuation traders.
Notably, the 14-day Relative Strength Index (RSI) has descended toward the 30 threshold, historically representing oversold conditions in forex markets. Should this momentum gauge breach below the critical 30 level, contrarian traders might interpret this as a potential exhaustion signal for the current downtrend.
From a support perspective, the November 22 low of 1.2487 represents immediate psychological support. A decisive breakdown below this level could accelerate selling pressure toward the April 2024 bottom at 1.2299, with channel support looming near 1.2260. Such a move would confirm the continuation of the broader bearish trend that began in mid-2024.
Conversely, resistance appears formidable near the 9-day Exponential Moving Average (1.2606), closely followed by the 14-day EMA at 1.2635. These technical levels coincide with the descending channel's upper boundary, creating a confluence zone that could cap any corrective rallies. A sustained breakout above this resistance cluster might invalidate the immediate bearish bias, potentially opening the path toward the December 6 peak at 1.2811.
The British Pound's performance against major currencies shows particular weakness against the Japanese Yen, while demonstrating relative stability versus commodity-linked currencies. This performance divergence reflects broader market risk sentiment and interest rate differential expectations among G10 central banks.
Traders should monitor upcoming economic data releases and central bank commentary for potential catalysts that could disrupt the current technical patterns. The pair's reaction to key psychological levels will likely determine whether we see continuation or reversal patterns emerge in coming sessions.
