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GBP/USD Technical Analysis
The GBP/USD pair endured a sharp decline across recent trading sessions, breaching the bearish target of 1.3455 outlined in our previous technical report and sliding to an intraday low of 1.3301 during the early morning session.
Technical Outlook – 4-Hour Timeframe:
On the short-term horizon, the simple moving averages continue to function as dynamic resistance barriers, imposing downward pressure on the price. This dynamic coincides with an ongoing bearish corrective wave that caps the potential for recovery over the current period.
Compounding the negative picture, the Relative Strength Index (RSI) is broadcasting clear negative signals, mirroring the weakness in bullish momentum and reinforcing the probability of a continuation of the short-term downtrend.
Expected Scenarios:
Bearish (Most Likely) Scenario:
As long as trading remains capped below the 1.3380 resistance ceiling, the bearish bias will retain the upper hand, with 1.3275 set as the initial target. A decisive break beneath this level would unlock the path toward further declines targeting 1.3230 as the subsequent objective.
Bullish Scenario:
Conversely, a decisive breakout above the 1.3380 resistance would reignite temporary upside momentum, with 1.3445 emerging as the initial target.
Risk Alert: Risk levels remain elevated amid persistent trade frictions and geopolitical tensions — all scenarios should be considered plausible.
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: 1.3275 | R1: 1.3380 |
| S2: 1.3230 | R2: 1.3445 |
| S3: 1.3170 | R3: 1.3490 |
