GBP/USD moved to the upside in previous week, closing above 1.32279.
Volatility may persist throughout the week, considering fundamental data releases from this week.
GBP/USD hourly chart analysis
Pound is currently sliding downwards after hitting a "ceiling" at the 1.3270 level. It has dropped below the red and green average lines, which signals that the immediate energy has drained out of the market and sellers are briefly in control.
The most critical spot on the chart right now is the "safety net" waiting just below at 1.3165. This is where the long-term blue line sits, and it acts as a major floor for the price. If the price can bounce off this blue line, the overall upward trend is still safe and could recover. However, if the price crashes through this floor, it would signal a much bigger drop is coming, likely pushing the value down toward 1.3100.
Hourly Chart
GBP/USD daily candle chart analysis
The GBP/USD is in a downtrend, currently trading at 1.3195, below the key 200-day SMA. Momentum is negative, with the 50-day SMA sharply approaching the 200-day line, risking a "Death Cross," which often signals further long-term declines.The pair faces strong resistance between 1.3268 and 1.3315, where any upward moves are likely to encounter selling pressure. Support holds near the psychological 1.3000 level after November's drop, but the current price action is mainly consolidative. Unless buyers push the price above 1.3315, the trend is likely to remain downward.