GBPUSD Bearish Pressure Slows Down at 1.25980 Key Level

GBPUSD bearish pressure slows down at the 1.25980 key level. Sustaining momentum below this level would require a significant push from the sellers. However, the bulls are eager to regain strength and re-enter the market.

The overall trend remains positioned for further downside movement. The 1.25980 level is a critical area that will determine the market sentiment for GBPUSD. A successful breakthrough below this level would suggest room for bearish sentiment to prevail. The bears have shown their readiness to take action, as observed on the daily chart.

Resistance Levels: 1.31370, 1.29870

Support Levels: 1.28140, 1.25980

Since July, the bulls have encountered significant resistance. This has led to a bearish phase as buyers were held back at the 1.31370 level. Since then, the bears have positioned themselves for a downtrend.

Technically, the market has formed a head and shoulders pattern, with the neckline around the 1.25980 level. If sellers maintain their momentum, we could see further declines.

However, the buildup of buyers could potentially lead to a surprising turnaround. The MACD (Moving Average Convergence and Divergence) remains stretched out as sellers continue to exert pressure around the 1.25980 level.

On the 4-hour chart, the price is consolidating, indicating an accumulation phase before a breakout can be anticipated. A further break below the 1.25980 level would signal a downward trend for the GBPUSD. Traders should therefore brace for more selling impact.

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