FX.co ★ XOXO | GBP/USD

GBP/USD Technical Analysis: The prevailing trend for the GBPUSD on this specific time frame chart appears to be bearish, evident through a thorough examination of the daily time frame chart. Over the course of several days, the price trajectory has consistently remained below the moving average lines, indicating a downward momentum. Notably, on Friday, the GBPUSD breached a significant support level at 1.2515, primarily due to the dominant presence of bears in the trading activity observed on both Wednesday and Friday of the preceding week. Consequently, the price's direction remains uncertain for this week. There's an expectation that the price may rise to the weekly pivot level, facing resistance from both the red channel line and the weekly pivot level. Hence, a bearish trend to the weekly support level of 1.2344 is possible if the price drops. The heightened activity from bearish traders suggests a strengthening bearish sentiment in the market, further reinforcing the likelihood of continued downward movement in the GBPUSD pair. Consequently, it is reasonable to anticipate that the price will continue its descent following the breakout of this critical support level.

Given the growing influence of bearish forces, it is conceivable that the price may soon approach the next support level situated at 1.2304. However, it is essential to acknowledge the existence of a bottom support level at 1.2039, which represents a significant barrier that could potentially impede further downward movement. In essence, the analysis indicates a strong bearish bias in the GBPUSD pair, with a high probability of the price descending further in the near future. Traders should remain vigilant and monitor the market closely for any developments that may alter this trajectory. Additionally, considering the presence of key support levels, traders may explore strategic entry and exit points to capitalize on potential trading opportunities while managing risk effectively.