GBPUSD Technical Analysis: The GBP/USD pair is trading today in a weak downtrend, as the pair recorded its highest price so far at 1.2615, and the lowest price at 1.2505, while it is currently trading at 1.2583. Despite the apparent downtrend in the short term, the analysis of technical indicators indicates the weakness of this trend, which enhances the possibility of upward corrections during the upcoming sessions.
GBPUSD Technical Analysis: Analysis of trading prices
By monitoring the price action, we find that the pair is trading above the main moving averages, which indicates the weakness of the downtrend. In light of the prices trading above the moving averages, this may be evidence of a balance of power between sellers and buyers, which reduces the chances of a strong continuation of the downward movement.
Technical analysis
Moving averages:
Trading the pair above the moving averages indicates that the general trend may not be as strong as imagined. The presence of the price above these levels reflects a state of volatility and balance between market forces, and weakens the possibility of completing the downward trend in the short term.
MACD Indicator Analysis:
MACD indicates a weak negative trend, as the indicator shows slight bearish momentum. However, the strength of this negative trend is very weak, which opens the door to opportunities for an upward move. Accordingly, MACD is evidence of weak bearish momentum and enhances the possibility of an upward correction in the near future.
Trading Expectations:
Based on the current technical analysis, the GBP/USD pair is likely to continue to fluctuate within a limited range in the short term, with the possibility of short-term upward corrections. If the pair is able to exceed the nearby resistance levels at 1.2615, we may witness upward movements towards higher levels.
Trading strategies based on Buy/Sell levels
| GBPUSD | In case of buying | in case of selling |
| Entry point | 1.2610 | 1.2564 |
| Target Point 1 (TP1) | First resistance: 1.2628 | First support: 1.2538 |
| Target Point 2 (TP2) | Second resistance: 1.2639 | Second support : 1.2517 |
| Stop Loss (SL) | 1.2564 | 1.2610 |
Despite the weak downtrend in the short term, technical indicators, including moving averages and MACD, point to a weakening trend and a positive upside potential for the pair. Therefore, the overall trend remains uncertain at the moment.
with a possible upward correction in the coming period if the pair continues to trade above the moving averages.
