FX pair moved to the downside, closing close to 1.3310 price level.
Moderate levels of volatility may be observed if fundamental data from United Kingdom provides any deviation from estimates.
GBP/USD hourly chart analysis
The GBP/USD hourly chart shows a dominant bearish trend with a short-term bullish correction underway. The overall bias remains bearish, as the 50-SMA is below the 100-SMA and both are under the 200-SMA, which acts as strong resistance near 1.33784. After bouncing from the 1.33100 support, the price moved above the 50-SMA and is now testing the 100-SMA around 1.33452. If the 100-SMA holds, the pair could fall back toward 1.33360 and 1.33100, confirming a continuation of the downtrend.
Hourly Chart
GBP/USD daily candle chart analysis
GBP/USD shows that the long-term bullish trend has stalled and shifted into a neutral, sideways consolidation phase. This loss of momentum is confirmed by the flattening of the SMA 50, the green line, and SMA 100, the red line. The price is currently trapped in a wide range. It is facing a strong resistance cluster overhead between 1.3430 and 1.3490. This area is formed by the SMA 50, the SMA 100, and a horizontal price level. Significant support lies below at the 1.3170 level. This major support is reinforced by the rising SMA 200, which is the blue line. The market is likely to remain choppy and range-bound until the price decisively breaks either above the 1.3490 resistance or below the 1.3170 support.Read More: Technical Analysis
Traders are long
Building on the trend from previous weeks, most traders now expect a bullish move in the FX pair, primarily due to persistent softness in the U.S. dollar.