GBPUSD Is Poised for a Significant Downtrend Amidst Bearish

Market Analysis – March 17

GBPUSD is poised for a significant downtrend amidst bearish signals. The Simple Moving Average (SMA) indicator (9-period) is currently positioned at $1.29190, slightly below the current price of $1.29340, indicating a potential reversal. Additionally, the Relative Strength Index (RSI) is hovering around 68.56, approaching the overbought threshold of 70, suggesting that the pair is losing upward momentum. This combination of an overextended RSI and a price trading above the SMA signals that the bullish momentum may be weakening, increasing the likelihood of a bearish correction.

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 GBPUSD pair recently tested a key supply zone near $1.30470, which aligns with an existing order block. This area has acted as a strong resistance level, preventing further upward movement. Recent candlestick formations show rejection wicks, indicating that sellers are actively stepping in around the $1.30000 region. Furthermore, the pair has failed to establish a higher high above $1.30473, confirming a weakening bullish drive and increasing the likelihood of a sell-off.

Projections suggest that GBPUSD may experience a downward movement toward the $1.27140 support level in the near term. A decisive break below this point could accelerate the decline to $1.23000, with further downside potential extending to $1.21000 if selling pressure intensifies. The combination of a bearish rejection at resistance, overbought RSI conditions, and proximity to key technical levels strongly indicates that the market is gearing up for a sharp downturn in the coming sessions.

GBPUSD Short-Term Trend: Bearish

On the 4-hour chart, GBPUSD exhibits clear bearish signals after failing to break through the $1.30470 resistance zone. A Change of Character (CHoCH) near $1.28610 suggests a shift from bullish to bearish momentum. The Simple Moving Average (SMA 9) at $1.29350 is now acting as dynamic resistance, reinforcing downward pressure. If the price falls below $1.28610, a further decline toward the $1.27140 support level is likely. Traders relying on forex signals may watch for confirmation of these bearish movements to identify potential trading opportunities.

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