GBP/USD experienced increased volatility during the second half of the week, testing the 1.31850 price zone.
Although market volatility remains relatively low in light of recent fundamental releases, next week's U.S. 2-Year Treasury auction and GDP data may increase uncertainty and a rise in volatility across financial markets.
GBP/USD Daily chart analysis
GBP/USD remains decisively bearish, as the pair continues to face significant downward pressure after failing to sustain higher levels near 1.36000. Key takeaways:
- The price is currently hovering near the 1.31850 support level, which is a critical area for preventing further decline toward 1.31000.
- Momentum is firmly controlled by sellers, evidenced by the price trading below the 20-day SMA and the MACD lines remaining in negative territory with an expanding bearish histogram.
Daily Chart
GBP/USD Weekly chart analysis
GBP/USD weekly chart reveals a broad macro range between 1.31000 and 1.37140, though current momentum is sharply bearish after breaking below the flat SMA at 1.34579. Sellers are aggressively driving the price into a critical structural zone, bringing key technical levels into focus:- Support: Immediate friction lies between 1.32455 and 1.31850; a weekly close below this cluster exposes the 1.31000 macro floor.
- Resistance: Any mean-reversion or short-covering bounce would need to reclaim 1.33000, followed by the 1.34579 dynamic SMA resistance.
Read More: Technical Analysis
Traders are bullish