GBPUSD Analysis Indicates Possible Further Declines Ahead

Market Analysis – January 27

GBPUSD analysis suggests the possibility of further declines ahead. The indicators on the chart point to prevailing bearish momentum. The 9-day simple moving average (SMA) at $1.23190 is trending below the current price of $1.24480, signaling a potential pullback before resuming the downward trend. The Stochastic Oscillator shows overbought conditions, with values at 86.78 and 73.16, reinforcing the probability of a near-term price correction. These technical signals align with the broader bearish sentiment.

GBPUSD Key Levels

Supply Levels: $1.25760, $1.28110, $1.34340
Demand Levels: $1.23000, $1.21000, $1.18020

GBPUSD Long-Term Trend: Bearish

The price action indicates a significant rejection near the $1.25620 resistance level, creating a lower high. The bearish change of character (CHoCH) near $1.28110 highlights a shift in market structure. The pair has also retraced close to the 0.786 Fibonacci level at $1.25390 but failed to breach it, further confirming sellers’ control. A breakdown below the $1.23000 support level would strengthen the bearish scenario.
The projection for GBPUSD remains bearish, with an anticipated drop toward $1.23000, the next major support level. A sustained break below the $1.23000 level would validate this move. Any attempt to retest $1.25620 resistance is likely to face strong selling pressure, keeping the bearish structure intact.

GBPUSD Short-Term Trend: Bullish

The direction of GBPUSD is bullish on the lower timeframe, with the price trading above the 9-period SMA at $1.24240, indicating strong upward momentum. A breakout above the recent market structure shift (MSS) around $1.23440 confirms the bullish bias. The Stochastic Oscillator is in the overbought region, suggesting potential consolidation or a minor pullback. The next resistance level is at $1.25620, while $1.24240 serves as immediate support to maintain the bullish structure on the four-hour chart.

For traders seeking insights on market movements, following forex signals can be an essential tool for effective decision-making in volatile markets.

Make money without lifting your fingers: Start using a world-class auto trading solution 

How To Buy Lucky Block

Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset, product, or event. We are not responsible for your investment results.