Ahead of this week’s UK inflation data, you will note that GBP/USD ended last week on the ropes after retesting the underside of a recently breached support on the weekly timeframe at $1.2767 (resistance). Eking out a fourth consecutive week in the red, this directs the technical spotlight towards a weekly support zone between $1.2331 and $1.2433, thus echoing a bearish presence despite the currency pair trending higher since late 2022.
Adding to the bearish vibe on the weekly timeframe, the daily chart reveals price recently pencilled in a lower low at $1.2620 (demonstrating early signs of a downtrend on this timeframe) and retreated beneath the 50-day simple moving average at $1.2763 (as of writing). This, aided by the daily chart’s Relative Strength Index (RSI) exploring sub-50.00, unearths support from $1.2584. If we push beyond here, the weekly support area highlighted above between $1.2331 and $1.2433 could make a show, which happens to share chart space with the 200-day simple moving average at $1.2349 (as of writing).
From the H1 timeframe, the week finished with buyers and sellers battling for position around $1.27 after fading resistance from $1.2737. Support at $1.2684, as you can see, is also in play; a push south of the noted support in early trading this week would help corroborate the bigger picture’s downside bias, unmasking a short-term bearish scenario and throwing light on H1 support from $1.2629 as an initial target, closely shadowed by $1.26 and, of course, daily support mentioned above at $1.2584.
Adding to the bearish vibe on the weekly timeframe, the daily chart reveals price recently pencilled in a lower low at $1.2620 (demonstrating early signs of a downtrend on this timeframe) and retreated beneath the 50-day simple moving average at $1.2763 (as of writing). This, aided by the daily chart’s Relative Strength Index (RSI) exploring sub-50.00, unearths support from $1.2584. If we push beyond here, the weekly support area highlighted above between $1.2331 and $1.2433 could make a show, which happens to share chart space with the 200-day simple moving average at $1.2349 (as of writing).
From the H1 timeframe, the week finished with buyers and sellers battling for position around $1.27 after fading resistance from $1.2737. Support at $1.2684, as you can see, is also in play; a push south of the noted support in early trading this week would help corroborate the bigger picture’s downside bias, unmasking a short-term bearish scenario and throwing light on H1 support from $1.2629 as an initial target, closely shadowed by $1.26 and, of course, daily support mentioned above at $1.2584.