The GBP/USD pair edges higher for the second successive day, trading around 1.3420 during the Asian hours on Monday. However, the bearish bias persists as the daily chart’s technical analysis indicates that the pair remains within the descending channel pattern.
The 14-day Relative Strength Index (RSI) remains below the 50 level, strengthening the bearish bias. However, the GBP/USD pair is positioned below the nine-day Exponential Moving Average (EMA), suggesting the short-term price momentum is weaker.
On the downside, the GBP/USD pair could target the primary support at a two-month low at 1.3365. A successful break below this level could put downward pressure on the pair to navigate the region around the descending channel’s lower boundary around the psychological level of 1.3300.
The GBP/USD pair may test the immediate barrier around the upper boundary of the descending channel, aligned with the nine-day EMA of 1.3460 and followed by the 50-day EMA at 1.3465. A break above this crucial zone may improve the short- and medium-term price momentum and support the pair to explore the region around 1.3788, the highest since October 2021, which was recorded on July 1.
