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GBP/USD Weekly Forex Analysis
Overview
The daily overview of the GBP/US D pair now signals a prevailing bearish bias. In this analysis, we will take a look at the latest structural break and walk over current price action as well as pivotal technical areas to close with an overall outlook.
Technical Analysis
Daily Chart
- Bearish Bias:
- The daily overview shows a bearish bias for GBP/USD.
- The price action aligns with this bias, with a recent structural break occurring at the 1.2520 level.
- Retracement:
- After the break at 1.2520, a slow retracement is back as well which could form short-term correction counter-trend rally.
4-Hour Chart
Short-Term High at 1.2710:
The 4-hour chart shows that the price has taken out the short-term high at 1.2710.
This upward movement has brought the price to a point of interest (POI) or supply zone, where it is currently reacting.
Key Technical Levels
Supply Zone:
The supply zone around 1.2710 is crucial. This area is expected to act as a strong resistance, potentially leading to a continuation of the bearish trend.
The price reaction at this level suggests selling pressure from larger market participants.
Demand Zone Target:
The next target for the bearish move is the 4-hour demand zone.
This zone is identified as a potential support area where buying interest might emerge.
Market Sentiment and Smart Money Concepts
According to the daily overview the GBP/USD price is currently showing a bearish bias. The last structural break happened at the 1.2520 level. It is currently retracing to the upside. When analyzing the 4-hour chart, we can see that the price takes out the short-term high at the 1.2710 level and now it is reacting near a point of interest (POI) or a supply zone.
As a result, the expectation is for the price to continue following the bearish bias and move in a bearish direction as indicated in the daily overview. The target is the 4-hour demand zone marked on the chart. Learn about FREE Smart Money Analysis
Conclusion
The GBP/USD pair is expected to resume its bearish trend following the retracement to the supply zone near 1.2710. The overall market structure supports a move towards the 4-hour demand zone. Traders should monitor the price action at the supply zone closely to gauge the strength of the bearish continuation. Aligning trading strategies with these key technical insights can enhance decision-making in the GBP/USD market.
