The GBP/USD pair recorded a bearish rebound after touching the 1.3345 level, which represented clear technical resistance. Strong US dollar data for April pressured the pound and forced the pair to break short-term support levels.
This comes as markets await a set of US data that will determine the next direction for the week.
GBP/USD: Market Overview
- The price broke the support at 1.3321 and is currently trading near 1.3310.
- The short-term trend has turned corrective and bearish.
- The support levels at 1.3287 and 1.3250 represent potential rebound points.
- Remaining below 1.3345 maintains selling pressure.
Technical Indicator Analysis:
- Moving Averages (EMA):
- The price is below the 50- and 100-day averages.
- The averages are sloping down and form dynamic resistance.
- MACD:
- A clear negative crossover with bearish momentum.
- Negative bars are increasing.
- Stochastic:
- A bounce from oversold areas.
- No confirmation yet of a trend change.
GBP/USD : Expected Scenarios:
Bullish Scenario (Corrective):
- A return above 1.3321 could push the price towards:
- 1.3338
- 1.3345
Bearish Scenario (Likely):
- A break above 1.3321 could push the price towards:
- 1.3338
- 1.3345 1.3300 triggers a decline towards:
- 1.3287
- 1.3275
Total expected movement points not to exceed 10 pips for each scenario.
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | GBPUSD |
| 1.33324 | 1.33127 | Entry point |
| First resistance: 1.33584 | First support: 1.32874 | Target Point 1 (TP1) |
| Second resistance: 1.33884 | Second support: 1.32574 | Target Point 2 (TP2) |
| 1.33127 | 1.33324 | Stop Loss (SL) |
The GBP/USD pair is in a limited downward correction phase after a failed breakout of 1.3345, and is currently trading within a narrow range between 1.3287 and 1.3345. With the US dollar continuing to dominate on the back of strong economic data, downward pressure on the pair is likely to persist unless there is a clear break above the 1.3345 resistance.
Important Economic Data This Week:
May 2: US Unemployment Claims
May 3: Nonfarm Payrolls (NFP) Report
