The British pound heads into the weekend, set to record losses as Wall Street’s bell signals the end of a hectic week, mainly driven by market sentiment, leaving macroeconomics or, also sometimes, central banks aside. In tone with the week, Friday’s trading day fluctuated between risk-on/off, on reports from Russia saying that its President Putin seen “certain positive shifts” in talks with Ukraine, while Ukraine Foreign Minister, saying the opposite. That said, the GBP/USD is trading at 1.3035, down 0.39%.

On the four-hour chart, the Relative Strength Index is about to cross below 30, suggesting that GBP/USD will turn technically oversold in the short term. Even if the pair makes a technical correction, the technical outlook will remain bearish unless it clears 1.3100 (psychological level).

On the downside, 1.3000 (psychological level) aligns as the next bearish target but the pair needs to close a four-hour candle below 1.3050 (static level) before stretching lower.

Above 1.3100, 1.3130 (20-period SMA, static level) could be seen as the next resistance before 1.3200 (psychological level).

The GBP/USD is downward biased and further cemented by the break of the last swing low at 1.3160, December 8, 2021 low, which was unsuccessfully tested in the previous two trading days, pushing the GBP/USD under the 1.3100 mark. Additionally, the GBP/USD broke below the bottom-trendline of a descending channel, which can exacerbate a move lower.

That said, the GBP/USD first support would be 1.3000. Breach of the latter would expose the psychological 1.2900 mark, followed by November 2, 2020, low at 1.2853, and September 2020 lows around 1.2675.

Bulls Ready To Recover GBPUSD From Oversold Conditions

Mar 13 2022

Stop Loss -0.77%

Holding time 39d11hr

1.30300

Entry price

1.29300

Stop loss price