GBPUSD Technical Analysis Summary

Current Market Overview

The GBPUSD currency pair has been experiencing a downward trend, primarily influenced by weaker economic data from the UK and a strengthening US dollar. This shift is attributed to market reactions to inflationary pressures stemming from increased US tariffs and growing concerns regarding global economic growth, which have driven investors towards safe-haven assets like the dollar.

Technical Levels

On the weekly chart, GBPUSD has entered a significant swing area that ranges from 1.3411 to 1.3514. The pair reached a low of 1.3495 today, with a slight recovery bringing it to approximately 1.3504.

Key Technical Indicators

Analyzing the hourly chart, the price has breached the 61.8% Fibonacci retracement level at 1.3529, indicating a strong bearish momentum. The pair's movement below this level, along with the 100-hour moving average, suggests a robust selling pressure. The previous swing area between 1.3505 and 1.3514 has now turned into a near-term resistance zone.

Market Sentiment

Traders are closely monitoring the resistance levels at 1.3514 and the 61.8% retracement level at 1.3529. A rebound above these levels could signal a shift in momentum, potentially disappointing sellers. Conversely, maintaining a position below the 61.8% level may lead to further downward movement in the GBPUSD pair.

Conclusion

The technical outlook for GBPUSD remains bearish as long as it stays below the critical 61.8% retracement level. Traders should watch for any potential reversals or breakouts that could indicate a change in market sentiment.