- The British pound falls amid downbeat market sentiment.
- GBP/USD could be downward-pressured by a weekly head-and-shoulders pattern.
- GBP/USD: The weekly and the daily chart support the downward bias.
The GBP/USD is trading at 1.3464, down 0.02% as the Asian session begins. The market sentiment is downbeat. Asian futures look tilted to the downside, except for the Hang-Seng and the Nikkei 225, gaining between 0.32% and 0.03%, respectively.
GBP/USD Price Forecast: Technical outlook
The chart depicts a head-and-shoulders pattern, which at press time, is trading below the neckline (pink line), around 1.3464.
The head-and-shoulders target is 1.2982. However, there are some hurdles on the way down. The first support would be the 100-week simple moving average (WSMA) around 1.3244, immediately followed by the 200-(WSMA) at 1.3161, and then the 1.2982 target.
On the flip side, in case of a break above the neckline, it could invalidate the pattern. The first supply zone on the way up would be the 50-WSMA around 1.3722.
The Relative Strength Index is at 38.60, aiming lower, supporting the downward bias.
Cable tested the neckline of the weekly head-and-shoulders pattern around 1.3517 but retreated below 1.3500 and looks poised to consolidate as momentum indicators exit from oversold levels. The price action of the last two days formed a bullish haramI candle pattern, though a close above 1.3560 above the neckline is required to confirm its validity. In case of that outcome, then GBP/USD could be pressured to the upside. The first supply zone on its way up would be the psychological 1.3600 figure.
On the other hand, failure to break above the neckline would pressure the GBP/USD pair to the downside. The first support on its way down would be 1.3400, followed by 1.3300 and then 1.3244, the 100-week simple moving average.
The Relative Strength Index is at 33.16, slightly flat, signaling exhaustion on the downward move. The pair might consolidate before resuming the previous direction.
ADDITIONAL LEVELS TO WATCH
|Today last price||1.3464|
|Today Daily Change||0.0036|
|Today Daily Change %||0.02|
|Today daily open||1.3428|
|Previous Daily High||1.3555|
|Previous Daily Low||1.3412|
|Previous Weekly High||1.3752|
|Previous Weekly Low||1.361|
|Previous Monthly High||1.3958|
|Previous Monthly Low||1.3602|
|Daily Fibonacci 38.2%||1.3466|
|Daily Fibonacci 61.8%||1.35|
|Daily Pivot Point S1||1.3375|
|Daily Pivot Point S2||1.3322|
|Daily Pivot Point S3||1.3232|
|Daily Pivot Point R1||1.3518|
|Daily Pivot Point R2||1.3608|
|Daily Pivot Point R3||1.3661|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.