22 Oct 2024
CURRENT;-1.30245
TARGET;-1.28500
STOPLOSS;-1.30203
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 .