GBP closed flat comparing against previous week closing above 1.31600.
Elevated 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 price has achieved several key bullish milestones. Most importantly, it is now trading above all three Simple Moving Averages (50, 100, and 200), indicating that momentum is positive across the short, medium, and long term for this timeframe. The break above the 200-period SMA (red line) is particularly significant, as this line was acting as a strong dynamic resistance for a long time.
As long as the price continues to hold above this 1.3140 support zone, the path of least resistance is up. The next logical target for buyers is the 1.3200 level, followed by the 1.3296 resistance.
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.