GBP/USD confirms bearish trend reversal

GBP/USD completes bearish head and shoulders pattern.
Bears approach May’s support at 1.3140 as oversold signals strengthen.

Christina Parthenidou XM

GBP/USD raised alarms over a negative trend reversal after its slide below the 1.3360–1.3400 region confirmed a bearish head and shoulders pattern and cemented a bearish crossover between the 20- and 50-day simple moving averages (SMAs).

With the US dollar roaring back – bolstered by President Trump’s apparent success in recent trade deals and stronger-than-expected US economic data – the British pound succumbed to bearish pressure.

The pair’s six-day losing streak is now flirting with May’s low of 1.3140, where the 38.2% Fibonacci retracement of the 2025 uptrend is located. A move lower could open the door for an aggressive decline toward the 200-day SMA near 1.3000 and the 50% Fibonacci level at 1.2943. Further losses could target the 61.8% Fibonacci retracement at 1.2743, if the 1.2870 barrier fails to hold.

Technically, the bearish cycle could soon take a breather as both the RSI and the stochastic oscillator hover in oversold territory. However, for a positive shift, the bulls would need to push the price back above the neckline at 1.3360–1.3500, reclaim the broken support trendline near 1.3500, and then print a new higher high above the key resistance zone at 1.3640.

In brief, GBP/USD has reversed to a bearish trajectory in the short-term picture, with sellers aiming for a new lower low near May’s floor of 1.3140. A drop below this level could trigger fresh selling pressure.

Author

Christina Parthenidou

Christina joined Trading Point in May 2017. She holds a master degree in Economics and Business from the Erasmus University Rotterdam with a specialization in International economics.

AUD/USD rises to 0.6950 as USD slips on Fed's Warsh

AUD/USD regains traction and extends the bounce toward 0.6950 in the Asian session on Friday. Fed Chair Warsh's comments reinforce the selling pressure on the US Dollar, allowing the pair to stretch higher. Warsh said that he remains committed to delivering price stability without giving away anything on future interest rate path.

USD/JPY falls in symc with USD, gives up 158.00 after Warsh's speech

USD/JPY has come under fresh selling pressure and gives up 158.00 in the Asian session on Friday amid the emergence of fresh US Dollar selling. Fed Chair Warsh's non-committal commentary on the future tightening path, weighs on the US Dollar and the pair.

Gold looks vacillating above $4,150

Gold alternates gains with losses below the key $4,200 mark per troy ounce on Friday. The yellow metal’s irresolute price action comes in response to a modest pullback in the US Dollar and a tepid recovery in US Treasury yields across the board.

Bitcoin steadies at $82,000: The five forces crushing the Uptober rally

Crypto markets have remained under pressure so far in October, with Bitcoin (BTC) sliding below $80,000 earlier this week before recovering to around $82,000 on Friday, as macroeconomic headwinds and cooling demand weigh on the market.

The Fed just got a second hot inflation number. Here's what the diesel signal is really saying

The Federal Reserve (Fed) faces a renewed inflation challenge after two consecutive reports showed price pressure intensifying across the US economy. September's Consumer Price Index (CPI) confirmed accelerating consumer inflation, while the Producer Price Index (PPI) revealed an even sharper rise in business costs. Behind both reports lies a common factor: energy prices.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.