FX.co ★ GBP/USD

GBPUSD Short-Term Outlook: In this discussion, we will analyze the price movement of GBP/USD. Given the weakness of the UK economy relative to the growth rate of the US economy, I have doubts about the potential for a rise in the British pound. However, this growth is primarily fueling a stock market bubble. I still expect the pair to continue its downward trend. Monday's trading is expected to remain range-bound between 1.36211 and 1.35877, with a breakout of this range providing a new target. The rising wedge pattern on the daily chart suggests a potential downside. Initially, the pair fell below 1.35649, but buyers pushed it back to near 1.35921, creating uncertainty about its next move. While financial constraints prevent me from trading further, I intend to open a short position to reassure myself of the strength of the US economy. I expect the price to fall to my target of 1.34655. On the H4 medium-term chart, we identify a bullish buy level at 1.36086 and anticipate a medium-term rally toward resistance levels at 1.37366-1.37544 and 1.39024. A confirmation of this rally would signal a breakout of the descending channel, potentially resulting in a significant increase in bullish volume.

Conversely, if bearish sell levels are favored, we would consider a potential decline to the support level at 1.32549 and correct downwards. A breakout of this level would form two peaks, allowing us to plot a bearish trendline and anticipate a decline through the descending channel. On the H1 chart, the bullish bias remains strong unless another bearish sell level emerges at 1.35509. A break below this level would signal a decline, requiring us to consider support levels at 1.35085 and 1.34718. A breakout of the ascending trendline with two troughs during the decline could strengthen the bearish momentum.