GBPUSD Technical Analysis: The GBP/USD pair is trading in a downward trend today, as the pair recorded its highest trading price so far at 1.2786, while it recorded its lowest price at 1.2716, and is currently trading at 1.2722. It appears that prices are trading below the moving averages indicators, which supports the downward trend at the moment.
GBPUSD Technical Analysis: Technical analysis
- Moving averages: Price movement below the moving averages indicates the dominance of sellers in the market, which reinforces the negative outlook and confirms the continuation of the downward trend.
- MACD indicator: The MACD indicator shows the end of the previous positive trend and the beginning of the emergence of a negative trend, as it reflects a shift in the momentum that supported the rise, which indicates weakness in purchasing power and the possibility of a continuation of the downward trend.
Economic data and its impact on trading:
Await the release of important US economic data, most notably the Producer Price Index (PPI), as this data may have a significant impact on the market. If the data comes out stronger than expected, it could increase expectations of a rate hike by the US Federal Reserve, which could support the pair’s downward trend.
Trading strategies based on Buy/Sell levels
| GBPUSD | In case of buying | in case of selling |
| Entry point | 1.2742 | 1.2710 |
| Target Point 1 (TP1) | First resistance: 1.2752 | First support: 1.2694 |
| Target Point 2 (TP2) | Second resistance: 1.2762 | Second support : 1.2679 |
| Stop Loss (SL) | 1.2710 | 1.2742 |
Based on the current technical analysis and the expected economic data, the GBP/USD pair is likely to continue its downward trend in the short term. It is important to follow the release of the US Producer Price Index data.
as it may directly affect the market sentiment.
