GBP/USD Analysis: Bearish Continuation or Bounce?
Key Observations:
Descending Channel:
GBP/USD is firmly within a downward sloping channel, with repeated lower highs and lower lows, indicating strong bearish pressure.
Critical Support at 1.2290:
The price is heading toward 1.2290, a significant support level where previous bounces have occurred.
Momentum Indicators:
The Ichimoku cloud shows bearish sentiment dominating the market, with no clear signs of reversal yet.
Resistance at 1.2554:
If a recovery happens, the first major hurdle will be 1.2554, where selling pressure is expected to increase.
Scenarios:
Bearish Continuation (60% Probability):
A break below 1.2290 could open the path toward deeper levels, with potential targets at 1.2200 or lower.
Bullish Bounce (40% Probability):
Buyers could step in at 1.2290, leading to a corrective bounce toward 1.2400 or the upper boundary of the descending channel.
Conclusion:
The current trend favors a bearish continuation toward 1.2290. A decisive break below this level could accelerate the downtrend. However, a bounce from support may provide a short-term recovery opportunity.
📢 Disclaimer:
This analysis is for educational purposes only and is not financial advice. Always conduct your own research and consult with a financial professional before making trading decisions. 🚨
Descending Channel:
GBP/USD is firmly within a downward sloping channel, with repeated lower highs and lower lows, indicating strong bearish pressure.
Critical Support at 1.2290:
The price is heading toward 1.2290, a significant support level where previous bounces have occurred.
Momentum Indicators:
The Ichimoku cloud shows bearish sentiment dominating the market, with no clear signs of reversal yet.
Resistance at 1.2554:
If a recovery happens, the first major hurdle will be 1.2554, where selling pressure is expected to increase.
Scenarios:
Bearish Continuation (60% Probability):
A break below 1.2290 could open the path toward deeper levels, with potential targets at 1.2200 or lower.
Bullish Bounce (40% Probability):
Buyers could step in at 1.2290, leading to a corrective bounce toward 1.2400 or the upper boundary of the descending channel.
Conclusion:
The current trend favors a bearish continuation toward 1.2290. A decisive break below this level could accelerate the downtrend. However, a bounce from support may provide a short-term recovery opportunity.
📢 Disclaimer:
This analysis is for educational purposes only and is not financial advice. Always conduct your own research and consult with a financial professional before making trading decisions. 🚨
Trade closed: stop reached
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.
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.