Gbpusd Trend Remains Bearish

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Gbpusd Trend Remains Bearish

Gbp/Usd Trades Above 1.2750, Trend Remains Bearish

GBP/USD has finally stopped its 2-day uptrend briefly and is seen near the 1.2760 handle. The GBP/USD pair is still above the 1.2750 support as the Monday session unfolds.

If we look at the D1 chart of GBP/USD, we can see that the pair is showing signs of consolidation as it trades inside a descending channel. This is a sign that the long-term trend of GBP/USD is still bearish despite the advances of the last two days.

Macd Shows Gbp Bulls Under Pressure

The MACD indicator also confirms the presence of bearish momentum in the GBP/USD pair. The MACD line is still below the centerline and the signal line, a sign that the GBP bulls are struggling to keep the pair afloat.

Additionally, the RSI (14-period) is also below the 50 line, which confirms that there are more bears in the market than bulls.

The first resistance is the form of 9-EMA on the D1 chart present near the 1.2767 level. After that, the upper end of the channel near the 1.2800 handle is also a strong resistance. Once we get a breakout from these two levels, it will propel the pair towards the 1.3044 level, which is the peak from 2024.

As for the support levels, the lower end of the descending channel near 1.2650 will serve as solid support. Before that, the 1.2700 and the 1.2720 are also strong support levels which can stop the US Dollar advance.

According to one analyst, a break of the 1.2650 level will open the doors to the next support near 1.2615. After that, the most obvious and important support is near the 1.2600 handle.

In the next few weeks, we expect an increase in the volatility for the GBP/USD pair. With the odds of a Fed rate cut being changed every week, it will be interesting to see what will be the next direction of GBP/USD. Right now, the odds are in favor of the USD but that could change after the first official rate cut from the US Federal Reserve in September.

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