GBP/USD Price Forecast: Falls toward 1.3600 after breaking below nine-day EMA

• GBP/USD may find initial resistance at nine-day EMA of 1.3645
• The 14-day Relative Strength Index holds slightly above the 50 mark, reinforcing a mild bullish bias.
• The primary support appears around monthly low at 1.3562.

The GBP/USD pair extends its losses for the second successive session, trading around 1.3620 during the Asian hours on Monday. The bullish bias persists as the daily chart's technical analysis indicates that the pair remains within the ascending channel pattern.

The 14-day Relative Strength Index (RSI) remains slightly above the 50 level, strengthening the bullish bias. However, the GBP/USD pair has moved below the nine-day Exponential Moving Average (EMA), suggesting the short-term price momentum is weaker.

On the upside, the GBP/USD pair may test the immediate barrier at nine-day EMA of 1.3645, followed by the 1.3788, the highest since October 2021, which was recorded on July 1. A successful breach above this level could reinforce the bullish bias and support the pair to approach the upper boundary of the ascending channel around 1.3820.

The GBP/USD pair could target the primary support around monthly low at 1.3562. A break below this level could put downward pressure on the pair to test the 50-day EMA of 1.3468, followed by the ascending channel's lower boundary around 1.3540.

GBP/USD: Daily Chart