GBP/USD Price Forecast: Moves below 1.2950 toward nine-day EMA

• GBP/USD may aim for immediate resistance at the four-month high of 1.2989.
• If the 14-day RSI exceeds 70, it will signal overbought conditions and a potential downward correction.
• The pair is expected to find immediate support at the nine-day EMA of 1.2895.

The GBP/USD pair extends its losing streak for the third successive session, trading around 1.2940 during the Asian hours on Monday. Technical analysis of the daily chart suggests a continued bullish bias, with the pair moving upwards within an ascending channel pattern.

The 14-day Relative Strength Index (RSI) remains slightly below 70, indicating strengthened bullish momentum. Further gains will indicate an overbought condition and downward correction sooner. Moreover, the GBP/USD pair continues to trade above the nine-day Exponential Moving Average (EMA), reinforcing strong short-term price dynamics and confirming the ongoing upward trend.

On the upside, the GBP/USD pair may challenge primary resistance at the four-month high of 1.2989, reached on March 12, followed by the five-month high at 1.3048, recorded on November 6, and ascending channel's upper boundary near 1.3050.

The GBP/USD pair is likely to find immediate support at the nine-day EMA of 1.2895. A break below this level could weaken short-term price momentum, potentially driving the pair toward the ascending channel's lower boundary near 1.2730, followed by the 50-day EMA at 1.2665.

GBP/USD: Daily Chart