Bearish GBPUSD is oversold at 1.231

Bearish GBPUSD is oversold at 1.231 and approaching a resistance zone. The market expects a consolidation phase toward the $1.241 resistance. Retail traders and investors should monitor this level for bearish signals, such as a candlestick pattern.

GBPUSD Technical Analysis – 9-January-2025

FxNews— The British Pound has been in a bear market, below the 50- and 100-period simple moving averages, and has lost 2.1% of its value since the beginning of January. However, the robust selling pressure resulted in the Stochastic Oscillator stepping into the oversold territory.

As of this writing, the currency pair trades at approximately $1.213, testing the April 2024 lowest price as support.

4-Hour Chart Technical Indicators

• The RSI 14 value is 27, meaning GBP/USD is oversold, and the prices could potentially bounce from this point.
• The Stochastic Oscillator value is 9.0, supporting RSI’s oversold signal.
• The Awesome Oscillator histogram is red, below zero, interpreted as the bear market should prevail.

Overall, the technical indicators suggest that while the primary trend is bearish, GBP/USD has the potential to erase some of its recent losses by rising toward higher resistance levels.

Bearish GBPUSD is oversold at 1.231

The immediate support is at $1.230. From a technical perspective, the downtrend from $1.261 could extend to lower support levels if GBP/USD bears push the prices below $1.230.

In the bearish scenario, the next target could be the $1.020 mark, the October 2023 low. Please note that the downtrend should be invalidated if the GBP/USD value exceeds the critical resistance level at $1.245.

The Bullish Scenario

The resistance level that has divided the bear market from the bull market is $1.254. From a technical perspective, if bulls pull GBP/USD from $1.254, prices can rise toward the next resistance level, $1.261.

GBPUSD Support and Resistance Levels – 9-January-2025

Traders and investors should closely monitor the GBP/USD key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.