FX pair moved to the downside, closing at 1.31500 level.
Moderate levels of volatility may be observed if fundamental data from United Kingdom and United States provide 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
Technical analysis shows a powerful bearish breakdown. The live price is 1.31338, which confirms the chart's data. After trading in a wide range, the price has decisively broken below two critical long-term support levels: the major horizontal support at 1.31700 and, more importantly, the 200-day Simple Moving Average. This break below the 200-SMA is a very strong signal that the long-term trend is turning negative. Compounding this, the 50-day SMA is crossing below the 100-day SMA, a classic bearish signal. The broken support levels at 1.31700 and the 200-SMA will now act as a heavy "ceiling" or resistance. The next major support level visible on the chart is significantly lower at 1.28000.Read More: Technical Analysis
Traders are long
Continuing previous weeks, most traders now expect a bullish move in the FX pair, primarily due to persistent softness in the U.S. dollar.