GBPUSD Technical Analysis: The GBP/USD pair is trading in a weak uptrend today, as the pair recorded its highest level so far at 1.2713 and its lowest level at 1.2646. The pair is currently trading at the level of 1.2667. Despite recording slight increases, it appears that trading is taking place below the moving averages levels, which weakens the strength of the uptrend and indicates that the bullish momentum is not strong enough to support it in the short term.
GBPUSD Technical Analysis: Analysis of Technical Indicators
- Moving Averages:
The price is trading below the moving averages in the short and medium term, indicating a weak uptrend. This coincides with a decline in the bullish momentum, which weakens the possibility of the bullish trend continuing at the moment.
- MACD Indicator:
Although the MACD indicator shows weak positive signals with a bullish crossover in the indicator lines, the positive momentum shown by the indicator is not strong enough to significantly support the uptrend. Also, the index remains in neutral territory, indicating a weak trend amidst declining purchasing power.
Outlook:
The GBP/USD pair is expected to remain in a narrow range in the short term, with the possibility of struggling to consolidate the upside trend due to weak momentum and being below the moving averages. If it fails to surpass the 1.2710 level, the pair may return to the support levels around 1.2640, and this decline may extend if the selling pressure continues.
Trading strategies based on Buy/Sell levels
| GBPUSD | In case of buying | in case of selling |
| Entry point | 1.2685 | 1.2642 |
| Target Point 1 (TP1) | First resistance: 1.2713 | First support: 1.2624 |
| Target Point 2 (TP2) | Second resistance: 1.2728 | Second support : 1.2615 |
| Stop Loss (SL) | 1.2642 | 1.2685 |
Despite weak bullish signals on the MACD, the overall technical analysis suggests a weak uptrend for the GBP/USD pair. It is advisable to watch the 1.2700 levels as a key resistance level, and if the pair fails to break it, it may witness a decline towards the next support areas.
