As the week begins, the GBPUSD pair shows clear signs of positivity, attempting to break the 1.2880$ level. However, the forecast remains bearish due to a prevailing double top pattern and key resistance and support levels.
Key Takeaways
Bearish Trend Continuation: The GBPUSD price is expected to continue its bearish trend below the 1.2880$ level.
Support and Resistance Levels: Key levels to watch are 1.2919$ for resistance and 1.2843$ for support.
Technical Indicators: The bearish outlook is supported by the EMA50 and RSI indicators on the 4-hour chart.
Potential Downside Targets: Further declines could see the GBPUSD reaching 1.2777$ and 1.2739$ if the support at 1.2843$ is breached.
GBPUSD Price Technical Analysis and Forecast
Current Position of GBPUSD
As of Monday’s early European session, GBPUSD trades firmer near 1.2875$. The softer Greenback, amid hopes of an interest rate cut by the US Federal Reserve (Fed) in September, provides some support to the major pair. The Fed's interest rate decision, to be announced on Wednesday, is highly anticipated, though no change in rate is expected.
Support and Resistance Levels
The expected trading range for today is between 1.2800$ support and 1.2945$ resistance. The EMA50 supports the continuation of the expected bearish wave. If the price consolidates above 1.2880$, it may lead to more gains and a potential return to the main bullish track.
Key Indicators for GBPUSD
EMA50: Supports the continuation of the bearish wave.
RSI: The Relative Strength Index (RSI) holds below the 50-midline on the 4-hour chart, indicating further downside potential.
Immediate Levels to Watch
Resistance: Immediate resistance is seen at 1.2919$, the upper boundary of the Bollinger Band. A break above this level could pave the way to 1.2938$, a high of July 24. Further north, the crucial hurdle is at the 1.2990$-1.3000$ region, representing a high of July 12 and the psychological mark.
Support: The first downside target is seen at 1.2843$, the lower limit of the Bollinger Band. A breach of this level could see a drop to 1.2777$, a low of July 9. Additional downside filters include 1.2739$, a low of July 4.
Market Sentiment
The softer Greenback amid the hope of an interest rate cut by the US Federal Reserve (Fed) in September provides some support to the GBPUSD. The US Federal Reserve's Interest Rate Decision will highlight Wednesday, with no change in rate expected.
Trend Forecast for GBPUSD
Overall Trend: Bearish
Expected Movement: Continued bearish trend if the price remains below 1.2880$. Consolidation above this level could lead to more gains and a potential return to the bullish track.
Conclusion
In summary, the GBPUSD price analysis indicates a bearish trend set to continue below the 1.2880$ level. The technical indicators and current market sentiment support this outlook. Traders should watch the key support and resistance levels closely to navigate the upcoming price movements effectively.
Comentarios