GBP/USD Analysis : Bearish Trend, Technicals, and Upcoming News
GBP/USD is currently in a bearish trend, supported by two key technical indicators - the breakdown of an uprising channel and a bearish crossover of the 50-period Simple Moving Average (SMA) below the 100-period SMA. Traders should be aware of the potential impact of tonight's FOMC and Thursday's BOE interest rate decisions, which could introduce volatility and potentially invalidate the current analysis.
Technical Analysis:
Bearish Trend:
GBP/USD has broken below an uprising channel, signaling a shift in trend dynamics.
The 50-period SMA has crossed below the 100-period SMA, confirming the bearish sentiment.
Entry Point:
Consider entering a short position in the bearish dynamic yellow zone, where the price may encounter resistance.
Activation Condition:
The signal activation condition is breaking below the key psychological level at 1.2500. A confirmed break below this level would further support the bearish bias.
Stop-Loss (SL):
Place the stop-loss just above the green horizontal line, acting as a key resistance level. This helps manage potential upside risk.
Take Profit (TP):
Set the take-profit target near the red horizontal line, representing a significant support level.
Technical Analysis:
Bearish Trend:
GBP/USD has broken below an uprising channel, signaling a shift in trend dynamics.
The 50-period SMA has crossed below the 100-period SMA, confirming the bearish sentiment.
Entry Point:
Consider entering a short position in the bearish dynamic yellow zone, where the price may encounter resistance.
Activation Condition:
The signal activation condition is breaking below the key psychological level at 1.2500. A confirmed break below this level would further support the bearish bias.
Stop-Loss (SL):
Place the stop-loss just above the green horizontal line, acting as a key resistance level. This helps manage potential upside risk.
Take Profit (TP):
Set the take-profit target near the red horizontal line, representing a significant support level.