GBPUSD Is Under Heavy Bearish Pressure Dropping Towards Mid-1.2000 Handle

GBPUSD Price Analysis – May 17

From the previous session into the new week, GBPUSD holds in red and continues to trade under strong selling pressure towards the mid-1.2000 handle. Sterling is under severe pressure due to extended lockdown that caused record-breaking economic contraction while basing that the central bank does not consider negative rates, but has failed to point it out, offered slight support.

Key Levels
Resistance Levels: 1.3514, 1.3050, 1.2647
Support Levels: 1.2013, 1.1792, 1.1409

GBPUSD Long term Trend: Ranging

Markets predict that pound in the coming days may sink to 1.20 zone vs. USD, requiring steady slip beneath 1.2099 pivot level, which would also validate double-top at 1.2647 level.

The increasing negative traction and the daily moving average of 5 and 13 are in full bearish setup, contributing to the downward trend, as the pair is on a path for the largest weekly fall in two months. For any scenario, in case of a quick turnaround, the trend may stay bearish as long as 1.3514 resistance level holds.

GBPUSD Short term Trend: Bearish

From a technical perspective, it is possible that within the falling wedge trend in the short term, the currency pair may shift downwards. In this situation, the pair may reach the level of 1.2013. The picture is showing that the entire corrective surge from level 1.1409 has now been finished.

This week the initial bias remains on the downside for a 1.1409 low-level retest. On the bright side, the level of minor resistance above 1.2247 may first alter neutral intraday bias. And therefore the risk for yet another decrease may persist on the downside.

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