GBPUSD Technical Analysis: The GBP/USD pair is trading in a downward trend today, as the pair recorded a high of 1.2707 and a low of 1.2629, and is currently standing at 1.2650. The technical analysis shows that the pair is experiencing strong selling pressure, as it is trading below the main moving average indicators, which supports the continuation of the downward trend.
GBPUSD Technical Analysis: Technical Analysis
- Moving Averages:
The pair is trading below the main moving averages (SMA) in the short and long term, as the price continues to remain below the 50-day moving average as well as the 200-day moving average. This indicates weak upward momentum, and reinforces the negative signal that supports the downward trend.
- MACD Indicator:
The MACD indicator indicates a clear negative trend, as the main line of the indicator is trading below the signal line, indicating the dominance of the downward trend and weak buying momentum. The index’s decline in the negative zone increases the likelihood of continued selling pressure on the pair.
Forecast:
- If the pair continues to trade below the moving averages, the expected scenario is for the continuation of the downtrend. The pair is likely to test the nearby support level at 1.2629, and if this level is broken, the downtrend may extend towards lower support levels such as 1.2600 or 1.2550.
- In case of any bullish bounce, a return above the 1.2707 level will need confirmation to continue the uptrend, but under the current market conditions, the overall trend remains bearish.
Trading strategies based on Buy/Sell levels
| GBPUSD | In case of buying | in case of selling |
| Entry point | 1.2700 | 1.2640 |
| Target Point 1 (TP1) | First resistance: 1.2723 | First support: 1.2609 |
| Target Point 2 (TP2) | Second resistance: 1.2733 | Second support : 1.2580 |
| Stop Loss (SL) | 1.2640 | 1.2700 |
The pair continues to trade below the moving averages, in addition to the negative signals from the MACD indicator, indicating that selling pressure on the GBP/USD pair continues at the moment. Therefore, the outlook remains bearish, with the possibility of testing lower support levels in the short term.
