GBPUSD Technical Analysis: The dollar is falling

GBPUSD Technical Analysis: The GBP/USD pair is trading in a weak downtrend today, as the pair recorded a high of 1.2980 and a low of 1.2906, and is currently settling at 1.2969. These movements reflect the presence of a state of volatility and weakness in the downtrend, which opens the way for some positive possibilities.

GBPUSD Technical Analysis: Technical analysis

Technical analysis shows that prices are trading above the moving averages, indicating the weakness of the current downtrend. This enhances the chances of an upward correction, as it indicates the presence of strong support at current levels.

Also, the MACD indicator shows signs of the end of the negative trend, which enhances the positive possibilities for the pair. If the positive momentum continues, we may witness upward movements in the near future.

Economic data and its impact

The markets are awaiting the release of important economic data, including the US unemployment claims index, which could significantly affect the pair’s trading. If the data comes out better than expected, it could put additional pressure on the pound, while if the data comes out negative, it could support the potential upside for the pair.

Trading Outlook

Bull Case: If the pair manages to break the resistance level at 1.2980, we could see a rise towards the 1.3000 and 1.3025 levels. In this case, the buying momentum is expected to increase, reinforcing the upside.

Bear Case: If the selling pressure continues and the support level at 1.2906 is broken, we could see an additional decline towards the 1.2880 and 1.2850 levels. Continuation of the downtrend could indicate further weakness in the price action.

GBPUSD Technical Analysis

Trading strategies based on Buy/Sell levels

In case of buying in case of selling GBPUSD
1.2982 1.2951 Entry point
First resistance: 1.3000 First support: 1.2939 Target Point 1 (TP1)
Second resistance: 1.3030 Second support       : 1.2910 Target Point 2 (TP2)
1.2951 1.2982 Stop Loss (SL)

 

While the overall trend of the GBP/USD pair remains bearish, technical indicators point to a potential upward correction in the short term. Economic data should be closely monitored, as it can directly influence market movement. It is important to carefully analyze support and resistance levels to determine optimal entry and exit points.

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