GBP/USD Price Analysis: Resistance at 1.2440-45, bearish outlook remains.

In early Monday's Asian session, GBP/USD retreated to 1.2345, losing momentum after a rebound from the two-month low seen the previous day. As a result, GBP/USD remains within the descending channel formed two weeks ago.

It's worth noting that if policymakers in Congress approve a temporary debt agreement, the latest preliminary deal on the US debt ceiling extension could lead to a pullback in the recent gains of the US dollar. However, Monday's holiday in the US and UK, along with recent dissatisfaction expressed by both Democrats and Republicans regarding the agreement, may test the bullish sentiment for the British pound.

Furthermore, with the 14-day relative strength index (RSI) nearing the 50.0 level and a bullish MACD signal challenging the bearish sentiment, the downside target for GBP/USD is the 61.8% Fibonacci retracement level of the March to early May uptrend, currently around 1.2380.

Afterward, the key resistance near the upper channel at 1.2400, if breached, would negate the bearish bias and attract buyers for the British pound.

However, the convergence of the 200-period exponential moving average (EMA) and the 100-period EMA around 1.2440-45 poses strong resistance for GBP/USD buyers, and a breakout above this level would shift the market sentiment back in favor of the bulls.

Additionally, the recent swing low near 1.2300 and the 78.6% Fibonacci retracement level near 1.2295 provide support and limit the downside potential for GBP/USD. The lower boundary of the mentioned channel at 1.2285 also acts as a key short-term support level.

Overall, GBP/USD may experience a corrective bounce, but the bearish trend remains intact until a breakout above the 1.2440-45 resistance zone.

GBP/USD: 4-hour chart

Trend: Expected to further decline.

Key Technical Levels

GBP/USD

Overview

Latest Price: 1.2343

Today's Intraday Change: -0.0005

Today's Intraday Change %: -0.04

Today's Opening Price: 1.2348

Trend

20-day Moving Average: 1.249

50-day Moving Average: 1.2435

100-day Moving Average: 1.2288

200-day Moving Average: 1.1978

Levels

Previous Day High: 1.2395

Previous Day Low: 1.2311

Last Week High: 1.2472

Last Week Low: 1.2308

Last Month High: 1.2584

Last Month Low: 1.2275

Daily Chart 38.2% Fibonacci Retracement Level: 1.2363

Daily Chart 61.8% Fibonacci Retracement Level: 1.2343

Daily Chart Pivot Support 1: 1.2307

Daily Chart Pivot Support 2: 1.2267

Daily Chart Pivot Support 3: 1.2223

Daily Chart Pivot Resistance 1: 1.2391

Daily Chart Pivot Resistance 2: 1.2435

Daily Chart Pivot Resistance 3: 1.2476

*The provided information is for reference purposes only and should not be considered as financial advice or investment recommendation.