European session, date: 08/07/2024
Technical analysis of GBPUSD. The GBPUSD pair continues its downtrend with a slowdown in price movements, which may lead the pair to enter a consolidation zone. Today, the pair is trading at $1.2709 Dollar, reflecting weak selling strength and the absence of sufficient support for the rise. In this technical analysis, we will review the performance of the pair and the main technical levels, focusing on the use of transition words to improve the flow of the text and analyze the situation comprehensively.
GBPUSD Technical analysis: Overview
The GBPUSD pair continues its downward movements amid a clear slowdown in price movements. Today, the pair is trading at $1.2709, indicating continued downward pressure. Despite some upward attempts, the price has not been able to make significant progress, as it is trading below most of the moving average crossovers. This situation increases the possibility of the pair entering a sideways zone if the current momentum continues.
In addition, the MACD indicator shows a weakness in the selling force, indicating a decline in the downward momentum. However, this signal alone is not enough to confirm a trend reversal, but rather requires monitoring more technical signals to determine the future direction of the pair more accurately.
Fundamental factors:
The movement of the GBPUSD pair is influenced by economic and political factors in the UK and the US. For example, geopolitical tensions and economic data such as employment reports and GDP affect the performance of the pair. In addition, decisions by the Bank of England and the Federal Reserve affect the overall price trend.
Trading strategies based on Buy/Sell levels
| GBPUSD | In case of buying | in case of selling |
| Entry point | 1.2720 | 1.2695 |
| Point 1 (TP1) | First resistance: 1.2745 | First support: 1.2665 |
| Target Point 2 (TP2) | Second resistance: 1.2770 | Second support: 1.2630 |
| Stop Loss (SL) | 1.2695 | 1.2720 |
In conclusion, the GBPUSD pair is trading at $1.2709 amidst the continuing downtrend and slowing price action. Traders need to monitor key technical levels, such as support at $1.2680 and resistance at $1.2750, to identify potential entry and exit points. Furthermore, economic and political news that may affect the market should be followed. Using technical and fundamental analysis together will help traders make informed decisions in this volatile period.
