GBPUSD is currently showing a clear breakdown from a rising wedge pattern on the daily timeframe—a classic bearish signal. After a prolonged bullish channel, price has decisively broken below the lower trendline support, confirming a shift in momentum. The pair is now approaching a major demand zone around the 1.3100–1.3150 area, which previously acted as a strong support level. Based on price action structure, further downside movement is anticipated until price retests that zone for potential reaction.
From a fundamental perspective, the pound has come under pressure as UK economic data has started to show signs of softening. Slower retail sales, weakening PMI numbers, and sticky inflation are weighing on the British currency. Meanwhile, the US dollar remains firm, supported by a hawkish stance from the Federal Reserve and strong US GDP data. As markets continue to price in the possibility of another rate hike or a longer pause in rate cuts, dollar strength is expected to persist—adding bearish weight to GBPUSD.
Technically, the breakdown from the wedge pattern confirms a bearish reversal structure. The current bearish leg is aligned with increasing downside momentum, and if price sustains below 1.3360, the next key target sits around the 1.3200 zone. This area also aligns with previous consolidation and could serve as a temporary floor. However, a break below that zone may expose deeper targets toward 1.3050 in the medium term.
Overall, the bias for GBPUSD remains bearish unless there is a strong bullish reversal signal. For now, trend-following traders may look to sell the rallies, keeping an eye on key support levels for signs of exhaustion. The current setup offers a good risk-to-reward opportunity with confirmation from both technical breakdown and macroeconomic headwinds.
From a fundamental perspective, the pound has come under pressure as UK economic data has started to show signs of softening. Slower retail sales, weakening PMI numbers, and sticky inflation are weighing on the British currency. Meanwhile, the US dollar remains firm, supported by a hawkish stance from the Federal Reserve and strong US GDP data. As markets continue to price in the possibility of another rate hike or a longer pause in rate cuts, dollar strength is expected to persist—adding bearish weight to GBPUSD.
Technically, the breakdown from the wedge pattern confirms a bearish reversal structure. The current bearish leg is aligned with increasing downside momentum, and if price sustains below 1.3360, the next key target sits around the 1.3200 zone. This area also aligns with previous consolidation and could serve as a temporary floor. However, a break below that zone may expose deeper targets toward 1.3050 in the medium term.
Overall, the bias for GBPUSD remains bearish unless there is a strong bullish reversal signal. For now, trend-following traders may look to sell the rallies, keeping an eye on key support levels for signs of exhaustion. The current setup offers a good risk-to-reward opportunity with confirmation from both technical breakdown and macroeconomic headwinds.
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Join our Forex Community Telegram group and connect with thousands of traders.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.