GBPUSD Finds Support at Confluence Zone

Market Analysis – November 5

GBPUSD price has been trending downward since its rejection from the resistance zone at 1.34080. The break below the swing low at 1.30450 confirmed a bearish shift, pushing the pair toward a bullish trendline anchored to previous swing lows. The price has now reached a confluence zone, marked by this trendline and a bullish order block, signaling potential support.

GBPUSD Key Levels

Demand Levels: 1.28680, 1.26110, 1.23210
Supply Levels: 1.30450, 1.34080, 1.35000

GBPUSD Long-Term Trend: Bearish

Upon reaching the supply zone at 1.34080 in September, the RSI revealed the GBPUSD market weakness. This was evident as a lower high formed in the overbought region, even as the price hit a new high within the resistance zone.

Following this signal, the appearance of the Supertrend red cloud confirmed the bearish trend. In October, the break below 1.30450 reinforced the downward movement, while the formation of a new bearish order block around this area added further selling momentum.

GBPUSD Short-Term Trend: Bearish

Currently, the price has entered the bullish order block at 1.28680, aligning with the test of the bullish trendline on the daily chart, creating a confluence zone. The strong rejection at this level suggests a possible shift, with bullish structure emerging on lower timeframes. This anticipated shift could offer high-risk-to-reward forex signals for a potential bullish reversal.

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