FX.co ★ GBP/USD

On Friday, I observed the GBP/USD pair declining further, breaking below the ascending channel amid the nonfarm payrolls backdrop. Since today is a day off, I shifted my focus to the daily timeframe to analyze the price action more closely. I noticed that the price reached the upper moving average (MA) at 1.3516 but failed to break lower, indicating a potential resistance zone. At the same time, I saw that the RSI and stochastic indicators were still pointing downward, reinforcing my view that the pair might continue its bearish momentum. As I prepare for Monday’s trading session, I’ll be watching to see whether the price breaks below the upper MA or rebounds from it. If it reverses upward, I anticipate a potential rally toward the upper Bollinger Band at 1.3649, which could present a buying opportunity. However, I’m also mindful that a breakdown below the MA could signal further downside, possibly targeting the lower MA and middle Bollinger Band around 1.3443/26. I’ll be paying close attention to how the price behaves near these levels to gauge the next move.

If the price continues to drop into the lower half of the Bollinger Bands, I believe the bearish momentum could accelerate, potentially pushing the pair toward the lower Bollinger Band at 1.3206. I’ll be monitoring key support levels closely, as a bounce from this area could indicate a reversal or consolidation phase. On the other hand, if the price breaks through these supports, I’ll consider it a strong bearish signal, possibly leading to deeper declines. Meanwhile, I’m keeping an eye on the RSI and stochastic for any divergence or oversold conditions that might hint at a reversal. As a trader, I understand the importance of patience and discipline, so I’ll wait for clear confirmations before entering any positions. Regardless of the outcome, I’ll adjust my strategy based on price action and indicator alignments. I wish all traders good luck and remind everyone to manage risk carefully, especially in such volatile conditions. Let’s stay vigilant and adapt to the market’s movements as they unfold.