The GBP/USD pair is currently trading at $1.2517, affected by clear selling pressures driven by economic and technical factors. On the macroeconomic side, the pound is suffering from pressures resulting from weak UK economic data compared to the strength of the US dollar supported by expectations of continued tight monetary policy by the Federal Reserve. These discrepancies in economic data are increasing pressures on the pound against the dollar.
Technical Analysis of GBP/USD: Analysis of Technical Indicators
- Moving Averages:
The price is continuously trading below the main moving averages (50 and 200 days), indicating that sellers continue to control the price action. The 50-day moving average acts as a dynamic resistance level that limits any attempts at a rebound.
- MACD Indicator:
The indicator reinforces the negative outlook as it settles below the zero line, with a widening gap between the signal line and the indicator line, reflecting strong selling momentum without any imminent reversal signals
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | GBPUSD |
| 1.2535 | 1.2495 | Entry point |
| First resistance: 1.2565 | First support: 1.2465 | Target Point 1 (TP1) |
| Second resistance: 1.2595 | Second support: 1.2435 | Target Point 2 (TP2) |
| 1.2495 | 1.2535 | Stop Loss (SL) |
The GBP/USD pair is showing clear signs of weakness confirmed by technical indicators and continued trading below the moving averages. The selling momentum is still dominant, and the road seems open for further declines if trading continues below the key support levels. It is recommended to follow the economic news that has a direct impact on the pound and the dollar, in addition to monitoring the important technical levels to make accurate trading decisions.
