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The GBP/USD pair extended its bearish movement in line with the previously expected outlook, successfully reaching the official downside target at 1.3390 amid sustained selling pressure and a firm strengthening of the US dollar.
Technical Outlook – 4-Hour Timeframe:
The Relative Strength Index (RSI) continues to generate negative signals despite entering oversold territory, underscoring the persistence of bearish momentum and the dominance of sellers in the market.
Meanwhile, the 50-day Simple Moving Average (SMA) maintains its role as a dynamic resistance, pressing down on price action and reinforcing the continuation of the broader downtrend.
Likely Scenario:
With the pair confirming a break below the 1.3420 support level, the downside bias is expected to remain intact throughout today’s session. A sustained move lower could see the pair targeting 1.3355 initially, followed by 1.3320 if bearish momentum strengthens.
Conversely, a decisive break above 1.3455 could temporarily ease selling pressure and trigger a corrective rebound, paving the way for a potential retest of the 1.3500 resistance area.
Warning:
Market risk remains elevated amid ongoing trade and geopolitical tensions. Price volatility could intensify, and all scenarios remain possible.
Trading CFDs involves risks, and therefore all scenarios may be plausible. The information provided above is not a recommendation to sell or buy but rather an explanatory reading of price movement on the chart.
| S1: 1.3355 | R1: 1.3455 |
| S2: 1.3320 | R2: 1.3520 |
| S3: 1.3260 | R3: 1.3560 |
