FX.co ★ Saddique93ml | EUR/USD

GBPUSD daily chart Analysis The GBPUSD daily chart shows a clear bearish trend from the September 2025 high near 1.3820 down to the current price around 1.3540, with price action forming a descending channel that has guided the pair through multiple lower highs and lower lows. The overall momentum remains negative, supported by a Relative Strength Index (RSI 14) hovering around 43, indicating neutral‑to‑bearish pressure and leaving room for further downside before reaching oversold conditions. The primary resistance zone lies between *1.3620 and 1.3645*, marked by the upper boundary of the descending channel and a recent swing high in early November. This area has repeatedly capped upward attempts, turning it into a strong supply zone. A clean break and close above 1.3645 would break the channel pattern, signaling a possible trend reversal or at least a strong corrective rally toward the next resistance near 1.3700. Just below the main resistance, an intermediate resistance sits at *1.3580*, highlighted by a previous minor high that now acts as a short‑term ceiling. If the price rallies from current levels, this zone could serve as a first hurdle before testing the channel top. Traders should watch for bearish candlestick patterns or volume divergence at 1.3580 to gauge whether sellers remain active. On the downside, the key support level is *1.3520*, aligned with the lower edge of the descending channel and a recent swing low. This level has held the price during the latest pullback and, if broken, could trigger a sharper decline toward the next support at *1.3460*, which was a demand zone in late October. A breach of 1.3460 would expose the pair to deeper lows, potentially reaching the psychological level of 1.3400. The moving average (20‑period SMA, white line on the chart) slopes downward and currently resides near 1.3585, reinforcing the bearish bias. Since the price is trading below the moving average, it confirms that sellers control the short‑term trend. A crossover above the MA could be an early sign of weakening bearish momentum, but until that happens, the bias remains down. Volume analysis shows a spike during the October drop, indicating strong selling participation, while recent bars have lower volume, suggesting the bearish push is losing steam. The RSI (14) at 43 is near neutral, giving room for either a continuation down or a bounce. Divergence between price (lower lows) and RSI (higher lows) would warn of a possible reversal, while a drop below 30 would signal oversold conditions and a potential temporary rebound. Trading discipline demands strict adherence to the identified levels. For short positions, consider entries near the 1.3580 resistance or on a break below 1.3520, with a stop loss placed just above 1.3645 to protect against a channel breakout. For long trades, wait for a confirmed break and close above 1.3645 with volume confirmation, targeting 1.3700 and higher, while setting a stop below 1.3580 to limit risk. Risk management is essential: allocate no more than 1–2 % of capital to a single trade, use a risk‑reward ratio of at least 1:2, and adjust position size according to volatility (ATR) around the support/resistance zones. Keeping a trade journal to track how price reacts at these levels will refine the strategy over time and improve consistency. In summary, GBPUSD remains in a bearish channel with resistance at 1.3645 (channel top), intermediate resistance at 1.3580, support at 1.3520, and next support at 1.3460. Monitoring volume, RSI, and moving average alignment around these zones provides clear cues for disciplined entries, exits, and risk control, helping traders navigate the pair’s movements with a structured approach.