FX.co ★ Noir | GBP/USD

GBPUSD Intraday Forecast: Let's look at the current price movement of the GBP/USD pair. Yesterday, the pair did not directly break through to the 1.33290 support level because the downtrend momentum was weak. We thought that a further 30 pips drop in price would present a buying opportunity, but unfortunately that did not happen. While a sharp rebound is not guaranteed, we considered buying given the potential to profit with a good risk-reward ratio of 5:1. Next, let's move on to the analysis of GBP. This pair is trading within a descending price channel, also known as a wedge, as shown on the 4-hour chart. The recent rebound from the upper limit is a technical indicator of the third descending wave. The pair is likely to fall from the current 1.33290 level to a support line crossing around 1.31890.

The decline has already begun and is likely to gain momentum by the end of the trading session. Looking at the daily chart for January 16-17, the GBP/USD pair formed a strong ascending channel, attempting to break through the upper limit of 1.33630 twice today but failing. After bouncing off the resistance line, the pair could fall sharply to the lower limit of the ascending channel at 1.32670. Therefore, selling GBP/USD from the current level of 1.33280 is consistent with expectations of a stronger US dollar. If the pair bounces back to 1.33480, we would consider increasing our short position. Overall, tomorrow is expected to be a very volatile day, so proceed with caution.