Economic Calendar
Volatility may persist throughout the week, considering fundamental data releases from this week.
GBP/USD hourly chart analysis
GBP/USD is currently in a corrective phase after a strong bullish run, with price caught between key moving averages, signaling consolidation or a potential trend shift. The 50-period SMA has turned downward, acting as immediate resistance, while the price is also below the 100-period SMA. The 200-period SMA at 1.3652 remains a key support level, with price approaching it. If the price holds above this level, the long-term bullish trend remains intact. Resistance lies at 1.3724 and 1.3868, with the current price consolidating near 1.3700. The price action shows lower highs and lower lows, suggesting a short-term downtrend within the larger uptrend. If 1.3700 fails to hold, the 200 SMA support at 1.3652 is likely to be tested.
Hourly Chart
GBP/USD daily candle chart analysis
GBP/USD daily chart shows that after a strong bullish run, the market is now in a corrective phase. The price is trading below the 50-period SMA, which is turning downward, indicating potential resistance at this level. Additionally, the price is below the 100-period SMA, and a bearish crossover between the 50 and 100 SMAs could signal further downside. However, the 200-period SMA, currently at around 1.3652, acts as a key support level, and as long as the price stays above it, the overall bullish trend remains intact. Resistance levels are seen around 1.3710 and 1.3800, while support is at 1.3652, aligning with the 200 SMA. If the price fails to hold above the 1.3700 level and breaks below 1.3652, a deeper correction towards 1.3430 is likely. On the other hand, a rebound and a close above 1.3724 would suggest the correction is over, potentially pushing the price back toward the 1.3800 mark.