European session, date: 07/31/2024
GBPUSD Technical analysis. the GBPUSD pair continues to face strong selling pressure, trading today at $1.2828. Despite bulls’ attempts to rebound, the downtrend remains dominant, reflecting the continued dominance of sellers in the market. In this GBPUSD Technical analysis, we will review the pair’s performance and the factors affecting it, highlighting the main technical indicators that indicate the strength of the downtrend.
Overview
Recently, the GBPUSD pair has witnessed multiple attempts by bulls to regain upward momentum, but these attempts failed in the face of the bears’ strength. The pair is currently trading at $1.2828, reflecting the continuation of the downtrend. The pair is trading below all major moving averages, indicating the absence of short-term technical support.
The moving averages are showing a clear sign of continued downward pressure, as the price is trading below these important levels. This technical arrangement reinforces the negative outlook for the pair, and indicates continued selling dominance.
In addition, the MACD indicator reinforces this negative outlook, as it shows the continued strength of the downtrend. The MACD is showing a bearish divergence while remaining in the negative zone, which means that the selling momentum is still strong and the pair may continue to decline.
Fundamental factors:
The movement of the GBPUSD pair is also influenced by fundamental factors, such as the economic and political situations in the UK and the US. Recent economic data from the UK has shown a slowdown in economic growth, which increases pressure on the British pound. In contrast, the US dollar benefits from strong economic data and expectations of a rate hike by the Federal Reserve.
Trading strategies based on Buy/Sell levels
| GBPUSD | In case of buying | in case of selling |
| Entry point | 1.2841 | 1.2811 |
| Point 1 (TP1) | First resistance: 1.2870 | First support: 1.2784 |
| Target Point 2 (TP2) | Second resistance: 1.2900 | Second support: 1.2750 |
| Stop Loss (SL) | 1.2811 | 1.2841 |
With the GBPUSD pair trading above most of its moving averages and the selling momentum weakening, the pair could see some stability or slight improvement. It is essential to monitor key technical levels and signals that may support or reverse the current trend. Relying on fundamental and technical analysis will help traders make informed trading decisions to ensure the best possible returns.
