The FX pair moved to the upside, continuing its rise into next week and closing slightly above 1.35500.
Economic Calendar
Elevated levels of volatility may occur during this trading week considering both United States and United Kingdom will present fundamental data that would impact market.
GBP/USD hourly chart analysis
GBP/USD is in a clear uptrend within a rising channel on the hourly chart. The pair has pulled back and is now testing a critical support zone around 1.3540, where the lower channel trendline and key moving averages meet. The reaction at this 1.3540 level is key: if the support holds, a bounce towards the recent highs above 1.3600 is expected, but if it breaks, a deeper correction towards 1.3488 is likely.
Hourly Chart
GBP/USD daily candle chart analysis
Price has recently dipped below the 50-day moving average, signaling a potential weakening of the prior bullish momentum. This bearish shift is further confirmed by the Relative Strength Index , which has fallen below its midline of 50, indicating that sellers are gaining short-term control. If this support level at 1.3200 fails to hold, the correction could extend further down towards the next significant Fibonacci levels.Read More: Technical Analysis
Traders are short
Further bearish sentiment has accelerated in the FX pair compared to the previous week.