Market Analysis – July 28
GBPUSD is experiencing downside pressure following a key structural breakdown. The pair has resumed its bearish momentum, as price has decisively dropped below the 9-day Simple Moving Average (SMA), currently positioned at $1.3460. This breakdown aligns with fading bullish strength, reflected in the Relative Strength Index (RSI), which has slipped below the midpoint to 38.44. The RSI also confirms the bearish divergence noted from recent price highs, while the overall market structure suggests a failure to maintain higher highs after testing resistance around $1.3630.
GBPUSD Key Levels
Supply Levels: $1.3630, $1.3800, $1.4000
Demand Levels: $1.3330, $1.3050, $1.2710
GBPUSD Long-Term Trend: Bearish
From a technical perspective, the price recently broke below a clearly defined ascending trendline and faced rejection at the order block (OB) near $1.3610. This rejection confirms the shift in market sentiment, as buyers were unable to hold the prior bullish base above $1.3450. The breakdown of this zone, followed by sustained selling, confirms a lower high formation, establishing the beginning of a bearish market structure. Price is now retesting former support at $1.3330, with sellers likely to defend against any short-term rebounds.
Looking forward, GBPUSD appears set for continued downside, particularly if bearish momentum holds below $1.3330. A decisive drop beneath this level would reveal intermediate support at $1.3140, followed by the $1.3050 region, where selling pressure might temporarily ease. However, if downward momentum remains strong, a deeper retracement toward $1.2710 is possible in the coming weeks. Unless bullish strength recovers above $1.3460, the broader market outlook remains skewed in favor of sellers. Traders may find valuable insights through the use of forex signals to navigate such volatile conditions.
GBPUSD Short-Term Trend: Bearish
On the four-hour chart, GBPUSD continues to trade bearishly after rejecting the $1.3630 supply zone marked by the order block (OB). Price reacted strongly to this bearish OB, triggering a notable downward move. It has now broken below the structure identified as BOS, reinforcing the continuation of the bearish trend. With the 9-period SMA positioned above current price and bearish momentum intensifying, a further decline toward $1.3330 seems probable.
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