GBPUSD Shows Signs Of Bearish Reversal After Key Resistance Rejection

Market Analysis – March 31

GBPUSD is showing signs of a bearish reversal following rejection from a key resistance level. The chart reveals multiple indicators pointing to a potential downward move. The 9-day Simple Moving Average (SMA) at $1.29420 is currently acting as dynamic support, but price action is struggling to sustain bullish momentum above this level. The Relative Strength Index (RSI) is at 61.84, displaying slight bearish divergence as price forms higher highs while RSI forms lower highs, indicating weakening bullish strength. Additionally, the RSI is approaching the overbought zone at 65.50, which could trigger selling pressure in the near term.

GBPUSD Key Levels

Supply Levels: $1.30470, $1.32500, $1.34340
Demand Levels: $1.27140, $1.23000, $1.21000

GBPUSD Long-Term Trend: Bearish

GBPUSD has recently reacted to an Order Block (OB) within a critical supply zone between $1.30000 and $1.30470. The emergence of a Change of Character (ChoCH) near this level suggests a potential shift in market structure from bullish to bearish. Although the trendline supporting the current uptrend remains intact, a break below it could signal further declines. At present, the price is struggling to sustain levels above $1.29500, a key area of interest.
Looking ahead, if GBPUSD breaks below the rising trendline and the $1.29420 support, it may accelerate lower toward $1.27140, a critical support level. A stronger bearish move could drive the price further down to $1.23000, aligning with a previous demand zone. Given the rejection from the supply zone and the weakening RSI, the probability of a bearish reversal is increasing. Traders may need to monitor a decisive break below the trendline to confirm a potential bearish continuation. Forex signals could help traders navigate these market shifts effectively.

GBPUSD Short-Term Trend: Bearish

GBPUSD has shown signs of rejection after tapping into a 4-hour Order Block (OB) between $1.30000 and $1.30470. A Change of Character (ChoCH) has occurred, suggesting a possible shift in market structure toward the downside.
The price is currently hovering near $1.29480, close to the 9-day SMA. A drop below this level could indicate further declines. If sellers maintain control, GBPUSD may move lower toward the $1.29110 and $1.27140 price levels.

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