Pound Sterling vs Dollar slides slightly after failing to break key resistance and remaining below major moving averages

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Pound sterling slides 0.64% today

Highlights

GBP/USD now trades below short- and long-term moving averages but holds above medium-term support, indicating ongoing pressure.
Momentum indicators give mixed signals with MACD showing a buy, while ADX and other oscillators remain neutral and suggest a weak trend.
Expected range for the next five days is $1.3275 to $1.3435 with over 80% probability of an upward move and baseline scenario for sideways action.

Anton Kharitonov, expert at Traders Union, observes that GBP/USD faces significant downside risks as selling pressure persists. He notes the lack of supportive fundamentals and the currency pair's inability to move above both its 20-day and 200-day moving averages. Technical readings are mixed, but longer-term signals remain bearish with the 50-day average below the 200-day. Despite minor intraday buying, Kharitonov expresses skepticism regarding any meaningful recovery in the short term. "Without new catalysts or a sustained move above $1.3385, I see further weakness as more likely for GBP/USD."

Viktoras Karapetjanc, expert at Traders Union, acknowledges the recent softness in GBP/USD but remains optimistic. He highlights that the pair retains medium-term resilience above its 50-day average and that the probability for an upward move within the current volatility band exceeds 80%. Karapetjanc emphasizes the opportunity for bullish setups should resistance at $1.3385 be breached. "The bullish structure remains intact and I expect further growth potential if GBP/USD sustains above its support levels in the coming days."

Sholanke Dele, market strategist, points to soft intraday tone and reinforces that downside pressure is intensifying for GBP/USD. The lack of impactful news leaves market sentiment muted and suggests limited demand recovery. Dele believes immediate support at $1.3321 and $1.3341 is at risk if selling resumes. "Unless buyers step up meaningfully, I see further downside as the path of least resistance for now."

Mixed momentum signals as bearish alignment limits recovery

GBP/USD is now trading below its 20-day moving average at $1.3385 and its 200-day average at $1.3406, but remains above the 50-day average at $1.3329. This setup suggests the pair is under short- and long-term pressure but retains some medium-term resilience. The nearest support is the week low at $1.3341, while resistance sits at the 20-day average of $1.3385. The Ichimoku Kijun at $1.3321 reinforces immediate support, and the 50-day moving average remains below the 200-day, indicating a bearish longer-term alignment. Momentum indicators give a mixed reading: MACD signals a buy, ADX is neutral, and RSI, Stochastic RSI, and CCI are all in neutral zones. Bull/Bear Power is positive, indicating intraday buyers, but the overall intraday tone is soft with intensifying downside pressure.

Earlier, analysts noted that sterling's direction was being shaped by shifts in U.S. monetary policy and anticipation of UK economic data. The current technical outlook introduces a more nuanced scenario, highlighting the importance of the 1.3341 support level as a potential pivot for the next directional move in GBP/USD.

Source of Data: GBP Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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