The GBP/USD pair experienced a strong downward trend after reaching 1.3199. It began to form a clear downtrend and declined below a set of moving averages, reflecting a shift in momentum from bullish to bearish.
Technical Indicator Analysis
Moving Averages
The price is moving below the short-term and medium-term moving averages, reinforcing the downtrend.
Short-term moving averages are showing clear negative crossovers, further evidence of ongoing selling pressure.
MACD
The indicator is moving in negative territory, and its bars remain below the zero line, supporting the continuation of the downtrend.
Stochastic
The indicator is fluctuating around 68 after bouncing off the oversold areas, indicating the possibility of a temporary volatility or rebound before the decline resumes.
GBPUSD Technical Analysis: Possible Scenarios
Bearish Scenario
Continued trading below the 1.2780 resistance level will support the continuation of the downward trend towards the 1.2701 level as a first target.
A break of the 1.2701 support level may pave the way for further decline towards the 1.2650 area.
Bearish Scenario
If the price breaks the 1.2780 resistance level and holds above it, we may witness a corrective rise towards 1.2810 – 1.2850.
Overcoming the moving averages again will support the possibility of a change in trend.
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | GBPUSD |
| 1.2780 | 1.2735 | Entry point |
| First resistance: 1.2810 | First support: 1.2701 | Target Point 1 (TP1) |
| Second resistance:1.2850 | Second support:1.2650 | Target Point 2 (TP2) |
| 1.2735 | 1.2780 | Stop Loss (SL) |
The overall trend for the GBP/USD pair remains clearly bearish after breaking key support and strong selling momentum. Upward attempts remain limited as long as the price does not breach and consolidate above the 1.2780 area.
GBP/USD: Consistency below 1.2780 supports an extension of the decline towards 1.2701 – 1.2650. A break above this barrier could push the price towards 1.2810 before any further decline.
Optimal strategy: Watch for selling opportunities from current levels or any bounce towards resistance, placing a tight stop loss above the 1.2780 resistance, and targeting 1.2701 and then 1.2650.
