GBPUSD Technical Analysis / Forex Technical Analysis

GBPUSD Technical Analysis – 2-October-2024

FxNews—The British currency is testing $1.326 support against the U.S. dollar, a supply zone backed by the 100-period simple moving average.

The recent selling pressure caused the Stochastic oscillator to enter the oversold territory, as shown in 19 in the description. This means the market is oversold, and the GBP/USD price can potentially rise and resume its uptrend.

GBPUSD Technical Analysis – 2-October-2024

Additionally, the Awesome oscillator indicator signals divergence, which could indicate a trend reversal or a consolidation phase on the horizon.

Overall, the technical indicators suggest the primary trend is still bullish, and the GBP/USD bull market will likely resume.

GBPUSD Forecast – 2-October-2024

The critical resistance is at $1.326, the August 27 high. From a technical perspective, the uptrend will likely resume if the GBP/USD buyers maintain the exchange rate above this mark. If this scenario unfolds, the 50-period simple moving average could be tested as an active resistance at approximately $1.334.

Furthermore, if the buying pressure exceeds $1.334, the next bullish target could be revisiting the September 25 high at $1.343. Please note that the bullish strategy should be invalidated if the GBP/USD dips below the critical resistance of $1.326.

Also read: EUR/USD Technical Analysis – 2-October-2024

GBPUSD Bearish Scenario – 2-October-2024

If bears (sellers) close the GBP/USD price below the $1.326 critical support, the dip from $1.343 could extend to the $1.315 resistance. In this scenario, the primary trend will be bearish because the market dips below the 100-period SMA.

GBPUSD Support and Resistance Levels – 2-October-2024

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

Support: $1.326 / $1.315 / $1.304
Resistance: $1.334 / $1.343