FX.co ★ GBP/USD

GBP/USD Hourly Chart Market Trend and Analysis: Looking at the daily chart of the GBP/USD currency pair, the pair recently fell back to 1.3419 after failing to break through the critical 1.3419 level earlier. Despite the turbulence, a major support level is forming around 1.3419, which is likely to usher the pair into a stabilization range. The general downtrend is still strong, and the 40-period exponential moving average (EMA) and 100-period simple moving average (SMA) have successfully crossed – a key technical signal known as a “death cross” – further strengthening the decline. The ongoing downside momentum has been characterised by volatile and erratic declines which suggest that the buyers are taking an important position in setting the trade direction of the GBP/USD pair. Notably, the volume of the momentum oscillator (AO) histogram began falling close to the zero line, which indicates the downward momentum is losing steam gradually. This means the selling pressure may be easing, but buyers should be cautious. Use a small lot size for safe trading. The buyers may try to push the price up to the high of 1.3419 or the 40-day moving average level. However, it is worth noting the stochastic oscillator parameter has dropped below the overbought zone. This crossing may start the decline again soon. In the current bearish scenario, market players should pay attention to the price movements of GBP/USD pairs, key support and resistance levels and technical signals to successfully take advantage of possible trade opportunities. Traders can react to the market trends and adjust the trading tactics accordingly to take more chances and get ideal trading results. Always use money management and risk management.