Greetings, dear traders. Today, we are here with GBPUSD technical analysis. Let’s dive into the analysis.
Today’s GBPUSD Technical Analysis and Trading Signals by Guriforex:
After experiencing a significant upward trend, GBPUSD has started to decline, forming a falling wedge pattern. This pattern, typically seen as a bullish reversal indicator, suggests a potential shift in the current bearish sentiment. The price has now reached the 38.2% Fibonacci support level, a critical area for potential reversal or continuation of the trend.
🔽 Bearish Scenario: If bearish momentum prevails and the price breaks below the 1.2640 support level, we could see a further decline toward the 1.2580 mark. This move would confirm the continuation of the downtrend, suggesting that sellers remain in control. Traders should watch for sustained bearish pressure and increased volume as confirmation of this breakout.
🔼 Bullish Scenario: Conversely, if the price manages to break above the upper trend line of the falling wedge and surpass the 1.2680 resistance level, it could indicate the end of the current downtrend. In this scenario, we would likely see a rise towards the 1.2730 level. This move would suggest a bullish reversal, with buyers regaining control and potentially pushing the price higher.
🤔 Market Sentiment: The current market setup presents a pivotal moment for GBPUSD. Traders should closely monitor key levels: a break below 1.2640 could signal continued bearish activity, while a break above 1.2680 could mark a bullish reversal. The 38.2% Fibonacci support level plays a crucial role in this analysis, acting as a potential turning point for the price action.
Summary:
In summary, GBPUSD’s recent price action has created a falling wedge pattern, indicating a possible reversal despite the prevailing bearish sentiment. Key support and resistance levels at 1.2640 and 1.2680 will be critical in determining the next directional move. Traders should remain vigilant and consider both scenarios while making informed trading decisions.
