GBPUSD Faces Strong Resistance With Potential Downside Risk Increasing

Market Analysis – February 24

GBPUSD faces strong resistance with potential downside risk increasing. The Stochastic Oscillator is currently in the overbought region, indicating that GBPUSD is experiencing exhaustion at higher levels and may soon face a pullback. The SMA (9) is trending upward but is approaching resistance, suggesting that bullish momentum is weakening. Failure to break higher from this level could confirm a bearish reversal as overbought conditions increase selling pressure.

GBPUSD Key Levels

Supply Levels: $1.28110, $1.30000, $1.34340
Demand Levels: $1.23000, $1.21000, $1.18020

GBPUSD Long-Term Trend: Bullish

Analyzing the price action, GBPUSD has approached a strong resistance zone around $1.28110, where previous rallies have been rejected. The price has made several attempts to break above this level but has struggled, forming a possible double-top pattern. A rejection from this zone could drive the price toward support at $1.23000, with further downside likely if sellers gain control. The lower Fibonacci retracement levels around $1.25390 and $1.24550 serve as key support zones that could be tested if weakness persists.

If GBPUSD fails to hold above $1.28110, a drop toward $1.23000 is likely in the coming sessions. A deeper decline could bring $1.21000 into focus as the next major support level. However, if buyers manage to push the price above the bearish order block and the $1.28110 resistance, it could invalidate the bearish outlook and pave the way for a rise to $1.30000. The current setup suggests a higher probability of a downward move unless a breakout occurs.

GBPUSD Short-Term Trend: Bearish

GBPUSD has pulled back from the bearish order block, signaling potential downside movement. The price has declined below the SMA (9), indicating weakening bullish momentum.
A break below the ascending trendline and the $1.25620 level could accelerate the decline toward the $1.23000 support. The Stochastic Oscillator is turning lower, confirming increased selling pressure. Forex signals indicate that traders should monitor key levels closely as price action develops.

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