GBPUSD Steady to Extend Its Decline on a Breach Beneath 1.2750 Level

GBPUSD Steady to Extend Its Decline on a Breach Beneath 1.2750 Level

GBPUSD Price Analysis – September 13

The GBPUSD pair settled at 1.2795, a level that was last seen in July, not far from a weekly low of 1.2762 level. GBPUSD was unable to hold its gains as the sellers took control ending the day below its opening price. The GBP lost roughly 500 pips last week after UK PM Johnson sent the Parliament the Internal Market Bill, which allows the kingdom to change the Withdrawal Agreement.

Key Levels
Resistance Levels: 1.3514, 1.3482, 1.3035
Support Levels: 1.2750, 1.2252, 1.1409
GBPUSD Long term trend: Ranging
In the daily chart, the bearish case is clear, as the pair is now well below its ascending trendline support around 1.2850 level, while barely holding above the horizontal support lines, which cannot anyway propel the pair upwards. Technical indicators have decelerated but stand at daily lows within negative levels.

The development keeps outlook bearish. The sustained break of moving averages 5 and 13 (now at 1.2750 level) already added to the medium to long term bearishness for a new low below 1.1409 level at a later stage, resuming the downtrend from 2.1161 (high) level.
GBPUSD Short term Trend: Bearish
In the 4-hour chart, the moving average 5 heads firmly lower below the moving average 13, as the RSI turned flat well into negative territory. GBPUSD’s sharp decline last week confirmed short term topping at 1.3482 level. Initial bias remains on the downside this week for 38.2% retracement of 1.1409 to 1.3482 at 1.2641 levels.

The strong rebound from there will suggest that such a decline is merely a corrective move. A breach of 1.3035 minor resistance level will turn bias back to the upside for a rebound. However, a sustained break of 1.2641 level will argue that the rise from 1.1409 level might be completed and bring a deeper fall to 61.8% retracement at 1.2252 level.

Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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