GBPUSD outlook signals sustained downside pressure with weakening sentiment. The GBPUSD pair is showing clear signs of bearish momentum as recent price action aligns with both moving averages and momentum indicators. The 9-day SMA at $1.3480 is acting as dynamic resistance, limiting upward movement and keeping the pair below the $1.3540 region. At the same time, the MACD histogram remains muted, with convergence around the zero line, suggesting that sellers are gradually regaining control after a failed attempt to sustain bullish traction. Overall, the broader market structure reflects weakening demand for the pound against the dollar.
The pair has already confirmed a break of structure (BOS) below $1.3480, followed by a retest of the same zone, which has so far failed to generate upward continuation. The rejection candle at $1.3540, marked by a strong wick rejection, emphasizes the presence of supply pressure. In addition, the short-term support at $1.3390 remains vulnerable, as price has been consolidating near this level without strong buying volume. The inability to push higher confirms the dominance of sellers in the current cycle.
Looking forward, the bearish outlook points toward deeper correction, with downside targets first at $1.3370 and then $1.3330. If momentum strengthens, a further decline could test the $1.3050 handle, a major liquidity zone and structural support from earlier this year. Only a decisive recovery above $1.3540 would challenge this bearish scenario and shift sentiment toward neutrality. Until such confirmation occurs, the path of least resistance remains tilted to the downside, favoring dollar strength over the pound.
GBPUSD Short-Term Trend: Bearish
On the four-hour chart, GBPUSD shows rejection from the $1.3540 resistance zone, reinforcing bearish sentiment. Price has slipped back below the 9-period SMA at $1.3490, signaling weakening upward momentum.
The $1.3480 level now serves as a pivot, with sellers likely to target $1.3390 in the near term. A break below $1.3370 could accelerate declines toward the $1.3330 support level. This outlook illustrates how forex signals can provide useful insights into identifying key pressure points and potential trade opportunities in such market conditions.
Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset, product, or event. We are not responsible for your investment results.
Trade on MT4 with Leverage up to 1:500! Trade on MT4 with Leverage up to 1:500!
X
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
