GBPUSD Faces Bearish Pressure After Rejection From Key Supply Zone

Market Analysis – February 3

GBPUSD faces bearish pressure after being rejected from a key supply zone at $1.25620. The 9-period Simple Moving Average (SMA), calculated on closing prices and currently at $1.24020, remains above the prevailing market price, indicating short-term bearish momentum. Additionally, the MACD histogram is trending downward, with the MACD line crossing below its signal line, further confirming the bearish bias. The inability to sustain levels above $1.25620 suggests the downtrend may continue, and persistent selling pressure could drive the price toward the next support level.

GBPUSD Key Levels

Supply Levels: $1.25620, $1.28110, $1.34340
Demand Levels: $1.23000, $1.21000, $1.18020

GBPUSD Long-Term Trend: Bearish

GBPUSD encountered rejection near the $1.25620 resistance level, coinciding with a prior order block. This rejection reinforces the bearish structure established after the change of character in October 2024, as a series of lower highs and lower lows have solidified the market’s downtrend. The recent breakdown below $1.24020 indicates that bears are regaining control, increasing the likelihood of further declines.

If the downward momentum persists, GBPUSD is expected to test support at $1.21000 in the short term. A breach of this level may intensify selling pressure, potentially pushing the price toward the next major downside target at $1.18020. A recovery would require a return to $1.25620 to shift the bearish outlook; however, with technical indicators and price action aligning negatively, additional declines appear likely. Forex signals suggest continued monitoring for potential trend shifts.

GBPUSD Short-Term Trend: Bearish

GBPUSD remains in a downward trend, marked by persistent bearish momentum and an inability to form higher highs. The price is currently testing an ascending trendline, signaling a possible breakdown. Key resistance is observed at the $1.24720 swing high, while critical support levels are noted at $1.23000 and $1.21000. A break below the $1.21000 support level could accelerate the bearish move toward lower price zones.

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