22 Oct 2024

CURRENT;-1.30245

TARGET;-1.28500

STOPLOSS;-1.30203

GBP/USD price forecast

ü  The GBP/USD pair is currently exhibiting a bearish trend, trading around 1.2982 after failing to maintain its position above the significant 1.3000 level. The price remains below the 50-day EMA, which stands at 1.3089, indicating that sellers are dominating the short-term market dynamics. The next critical support level is at 1.2845, coinciding with the 200-day EMA, which may provide some downside protection. Should selling pressure persist, a breach of this long-term support could lead to accelerated declines towards 1.2800.

ü  The MACD indicator reflects a weak scenario, with the histogram indicating increasing negative momentum as the MACD line stays below the signal line, further supporting the bearish perspective. Bulls are finding it difficult to gain momentum, and the inability to surpass the 50-day EMA heightens the risks of further declines. A daily close beneath 1.2900 could solidify the bearish outlook, while a recovery above 1.3100 would be necessary to reinstate the pair's upward potential.

GBP/USD Technical Overview

ü  The Relative Strength Index (RSI) on the 4-hour chart has fallen below the 50 mark after remaining above it during the latter part of the previous week, indicating a reluctance among buyers to commit to a prolonged recovery.

ü  On the downside, immediate support is found at 1.2980 (static level), followed by 1.2960, where the 100-day Simple Moving Average (SMA) is situated. A daily close beneath this level could attract further technical sellers and potentially lead to a decline towards 1.2900 (round level, static level).

ü  To the upside, temporary resistance may be identified at 1.3050 (50-period SMA), followed by levels at 1.3090-1.3100 (Fibonacci 23.6% retracement of the recent downtrend, static level) and 1.3140 (50-day SMA).

Fundamental Overview

ü  GBP/USD is experiencing slight bearish pressure, moving towards the 1.3000 mark as the new week begins, following gains recorded on Thursday and Friday. A daily close below 1.2960 may signal the potential for further declin Pound Sterling maintained its position during the latter part of the week, benefiting from capital outflows .