• 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

Weekly chart 

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.

Daily chart

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

GBP/USD

Overview
Today last price 1.3464
Today Daily Change 0.0036
Today Daily Change % 0.02
Today daily open 1.3428
 
Trends
Daily SMA20 1.3741
Daily SMA50 1.3781
Daily SMA100 1.3884
Daily SMA200 1.3844
 
Levels
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

 

 

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