GBP/USD outlook

Source: Dukascopy Bank SA
FX pair closed slightly below 1.35200 while continuing to engage in of bearish trend.

Economic Calendar


No significant volatility levels are anticipated in the FX pair; however, unexpected fundamental information could trigger a risk readjustment in the market.

GBP/USD hourly chart analysis

GBP/USD chart shows a sharp bullish reversal, with the price now in a corrective pullback testing a key support level. The previous downtrend ended with a powerful "V-shaped" recovery from the 1.3388 low, an explosive move that pushed the price above all its key moving averages and signaled a significant shift in market control from sellers to buyers. This bullish reversal is confirmed by the moving averages, as a short-term "golden cross" is in progress, reinforcing the new bullish momentum. After hitting resistance at 1.3540, the price has pulled back and is currently testing the 1.3488 level as its first line of support, with a stronger support zone between 1.3460-1.3470. As long as the price holds above this support area, the outlook remains bullish, with an eventual re-test of the 1.3540 high being the likely objective.

Hourly Chart

GBP/USD daily candle chart analysis

The current short-term environment may imply further bearishness if the 1.33600 support level is broken. Rejection of this support level could create directional significance in the short term, potentially testing the 1.3600 resistance level.

Daily chart


Traders are long
The majority of traders currently anticipate a bullish trend in the FX pair, largely driven by ongoing weakness in the U.S. dollar. This sentiment is supported by factors such as soft economic data from the U.S., expectations of potential interest rate cuts by the Federal Reserve.




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