Pound Sterling vs dollar price prediction: Support at $1.3416 in focus as GBP/USD remains pressured

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Pound Sterling vs US Dollar slips 0.11%

Highlights

GBP/USD is trading at $1.3429, below the 20-day moving average ($1.3455) but above the 50-day ($1.3329) and 200-day ($1.3407) averages, signaling short-term selling pressure amid medium-term support.
Technical indicators are mixed, as the daily MACD issues a strong buy, but ADX and oscillators show moderate or indecisive trend strength and oversold intraday conditions.
Weekly outlook expects the pair to remain rangebound between $1.3390 and $1.3470, with over 80% probability for near-term price upside according to weekly MACD, RSI, and MA-50 signals.

Seller dominance persists with mixed momentum and oversold signals

From a technical perspective, sellers are in control short term, as the pair sits below MA-20, but support is visible at MA-50, MA-200, and the Ichimoku Kijun level ($1.3416). Resistance resides near the recent high and the MA-20. On the daily chart, MACD signals strong buy, ADX trend strength is moderate, and RSI supports the current move, but Stoch RSI highlights oversold conditions. Bull/Bear Power (BBP) shows seller dominance intraday, while the Awesome Oscillator remains neutral; current price action occurs near the high of today's narrow range with light opening pressure, and overall momentum signals remain divided.

Upside bias favored as buy signals cluster near key support

For the short term, the anticipated trading range is $1.3390 – $1.3470, based on typical weekly volatility. With strong buy signals from MACD, RSI, and MA-50, the probability of a price increase is estimated at over 80%. The base scenario sees GBP/USD holding between support at $1.3416 and resistance at $1.3470. A close above $1.3470 may prompt further gains, while a move below $1.3410 could lead to renewed selling pressure.

Viktoras Karapetjanc, expert at Traders Union, notes that GBP/USD continues to find support from medium- and long-term buyers despite short-term pressure below the 20-day MA. He sees that bullish technical signals like MACD, RSI, and MA-50 support a constructive outlook, with the probability of further price increases above 80%. However, the absence of significant news flows means market sentiment remains steady, and volatility is contained. In his view, as long as the pair holds above $1.3416, momentum favors another test of resistance at $1.3470. "With strong technical underpinning and a favorable macro backdrop, I expect GBP/USD to maintain its upward bias in the coming sessions."

Last time, analysts noted that Pound Sterling versus the US Dollar trades above major moving averages, underpinned by strong momentum from daily MACD and ADX, with bullish RSI and buyers holding an edge despite some neutral or oversold signals from oscillators. The pair is consolidating within a tight intraday range, with dynamic support near the Ichimoku Kijun level and resistance just overhead, and weekly technicals indicate a continued bullish bias with a high probability of further gains if resistance levels are breached.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.