GBPUSD Encounters Rejection At Critical Resistance Zone Indicating Potential Decline

Market Analysis – March 24

GBPUSD has faced rejection at a critical resistance zone, signaling a potential decline. The 9-day Simple Moving Average (SMA) is currently positioned at $1.29600, with the price now trading below it, suggesting the possibility of a bearish crossover. The Relative Strength Index (RSI) is at 62.27 and trending downward from an overbought level near 69.02, indicating that bullish momentum is waning. A continued drop in the RSI toward the 50.00 mark would confirm growing selling pressure and a potential shift in market sentiment.

GBPUSD Key Levels

Supply Levels: $1.30470, $1.32500, $1.34340
Demand Levels: $1.27140, $1.23000, $1.21000

GBPUSD Long-Term Trend: Bearish

The price action shows a clear rejection at the $1.30470 supply zone, a well-established resistance level. The recent bearish candle closing below the $1.29600 level highlights the weakening control of buyers. If the price fails to reclaim this level, the bearish structure is likely to persist, potentially leading to further downside movement.
Continued bearish pressure could drive GBPUSD toward the next significant support at $1.27140. A breakdown below this level might expose the $1.23000 support zone, where stronger buying activity could emerge. However, a recovery above $1.30470 would challenge the current bearish outlook and possibly shift market sentiment. Traders relying on forex signals may closely monitor these critical levels for confirmation.

GBPUSD Short-Term Trend: Bearish

GBPUSD has shown a Change of Character (ChoCH) on the 4-hour chart, pointing to a potential shift toward a bearish trend. The pair has been rejected at the $1.30470 resistance zone and is now trading below the 9-day SMA at $1.29310, reinforcing the bearish outlook. The RSI stands at 42.85, remaining below the neutral 50.00 level, which indicates increasing downside momentum. If selling pressure continues, the next key support to watch is $1.27140.

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