I’ve been watching GBP/USD closely as price continues to slide, now reaching 1.32848. The initial rejection near 1.33250 confirmed institutional sell pressure, and the breakdown below 1.32950 suggests further downside movement.
At this stage, price is sitting just above the 1.32750–1.32800 support zone, which could act as a temporary demand level. If buyers step in here, we might see a corrective bounce toward 1.33050–1.33250, but only with solid confirmation. However, fundamentals remain bearish—UK Services PMI dropped to 48.9, signaling economic contraction, adding further weight to GBP downside.
Technical indicators reinforce the sell-side momentum. MACD remains weak, indicating sellers still control the market. RSI near 41.70 suggests there’s room for further declines but signals that price is approaching oversold territory. The ADX at 29.52 confirms a developing trend, though not yet fully directional.
Given these conditions, my plan remains focused on a sell setup near 1.32950, using it as a retest level. If price rejects this zone, it strengthens the short bias toward 1.32700, a key liquidity target. On the other hand, if price stabilizes at 1.32750–1.32800, I'll reassess whether institutional players are absorbing sell orders for a potential reversal.
Right now, my focus is on price reaction near support. If sellers keep control, this drop could extend further, but if signs of buy-side defense appear, a temporary bounce may develop. I'll wait for clear confirmation before executing my next position.
At this stage, price is sitting just above the 1.32750–1.32800 support zone, which could act as a temporary demand level. If buyers step in here, we might see a corrective bounce toward 1.33050–1.33250, but only with solid confirmation. However, fundamentals remain bearish—UK Services PMI dropped to 48.9, signaling economic contraction, adding further weight to GBP downside.
Technical indicators reinforce the sell-side momentum. MACD remains weak, indicating sellers still control the market. RSI near 41.70 suggests there’s room for further declines but signals that price is approaching oversold territory. The ADX at 29.52 confirms a developing trend, though not yet fully directional.
Given these conditions, my plan remains focused on a sell setup near 1.32950, using it as a retest level. If price rejects this zone, it strengthens the short bias toward 1.32700, a key liquidity target. On the other hand, if price stabilizes at 1.32750–1.32800, I'll reassess whether institutional players are absorbing sell orders for a potential reversal.
Right now, my focus is on price reaction near support. If sellers keep control, this drop could extend further, but if signs of buy-side defense appear, a temporary bounce may develop. I'll wait for clear confirmation before executing my next position.
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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.