FxNews—The British pound has traded sideways against the U.S. dollar since July 29. Meanwhile, the primary trend is bearish, as the price is below the 50- and 100-period simple moving averages in the 4-hour chart.
As of this writing, the GBP/USD currency pair trades at approximately $1.284, testing the descending trendline. The 4-hour chart below shows the price, key supply and demand levels, and the technical indicators utilized in today’s analysis.
GBPUSD Technical Analysis – 31-July-2024
The technical indicators in the 4-hour chart suggest the primary trend is bearish, but the market suffers from uncertainty and trades in a narrow range area.
- The awesome oscillator constantly changes its bars’ color from red to green and vice versa, but the bars are below the signal line. This means the market lacks momentum.
- The stochastic oscillator value is 45, hovering in the middle, suggesting the trend is neutral and mildly bearish.
- The relative strength index indicator is below the median line with a value of 45, moving alongside the middle line, which means the GBP/USD pair lacks a trend and is mildly bearish.
GBPUSD Forecast – 31-July-2024
From a technical standpoint, the primary trend of the GBP/USD pair is bearish because the price is below the 50 and 100-period simple moving averages.
That said, the July 29 low at $1.28 is the immediate support. If the bears (sellers) close below $1.28, the GBP/USD downtrend will likely be triggered, and the first bearish target could be the July 3 high at $1.277, support in conjunction with the July 9 low.
Furthermore, if the selling pressure exceeds $1.277, the path to the next supply zone at approximately $1.271 could be paved.
- Read also: EUR/USD Technical Analysis – 31-July-2024
GBPUSD Bullish Scenario – 31-July-2024
The key resistance level holds firmly at the July 23 low, the $1.288 mark. As of this writing, the pair is testing the descending trendline. If the bulls (buyers) close above the trendline, the price will likely aim for $1.288.
Furthermore, the trend should be reversed if the price exceeds the $1.288 mark because it aligns with the 100-period SMA. In this scenario, the next resistance level will be the July 16 low at $1.293.
GBPUSD Support and Resistance Levels – 31-July-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: 1.280 / 1.277 / 1.271
- Resistance: 1.288 / 1.293 / 1.304
Disclaimer: This technical analysis is for informational purposes only. Past performance is not necessarily indicative of future results. Foreign exchange trading carries significant risks and may not be suitable for all investors. Always conduct your research before making any investment decisions.