The GBPUSD market has experienced a notable drop, falling from the swing high of 1.3400 down to the critical major trade zone at 1.30840. This substantial move highlights the current market volatility. The 1.30840 zone is crucial, as a decisive break below it could initiate a new downward trend, potentially shifting market sentiment and impacting trading strategies.
The ongoing bullish trend paused briefly in July after the price reached the significant 1.30840 level. Following this, the upward momentum resumed, leading to a bullish breakout above this zone in August. In September, the price pulled back to retest the zone, resulting in a bullish push to the last swing high on the daily chart at 1.34000.
The Stochastic indicator shows an oversold condition on the daily chart, aligning with the price’s re-entry into the major 1.30840 zone. However, the MACD continues to indicate GBPUSD price decline, as reflected by the negative histogram bars.
GBPUSD Short-Term Trend: Bearish
The recent move into the 1.30840 zone presents a significant challenge to the bullish outlook. The market structure on the lower timeframe also suggests bearish sentiment. Without a shift in structure and confirmation of a reversal pattern, such as a reverse head and shoulders, there is a high probability that sellers will take control. Traders may find monitoring forex signals useful in assessing potential market reversals during this period.
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.
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