GBP/USD Price Analysis: Fresh downside looks likely on Descending Triangle breakdown below 1.1900


  • GBP/USD pair has dropped to near weekly low around 1.1922 despite easing risk-off mood.
  • Consideration of policy slowdown or a pause in the policy tightening spell by the BoE could push Sterling on the back foot.
  • The Cable is hovering near the horizontal support of the Descending Triangle plotted from 1.1920.

The GBP/USD pair has dropped to near weekly low around 1.1922 in the early Asian session. The Cable is expected to be dumped by the market participants as the street is anticipating a pause or a deceleration in the pace of interest rate hiking by the Bank of England (BoE) despite the fact that the United Kingdom inflation is still trending in the double-digit figure.

Analysts at Commerzbank are of the view that “Bailey is not really committing very firmly to further strong tightening measures. In view of an inflation rate in double-digits, I would have hoped for more commitment toward rate hikes. But obviously, the BoE is not willing to inflict (further) harm on the economy and the population to get a grip of inflation.”

Meanwhile, the market sentiment looks positive as risk-sensitive assets like S&P500 has shown a decent recovery on Thursday. The US Dollar Index (DXY) is struggling to recapture the 105.00 resistance as the risk aversion theme is fading gradually.

GBP/USD is auctioning near the horizontal support of the Descending Triangle chart pattern plotted from February 17 low around 1.1920 on a four-hour scale. The downward-sloping trendline of the aforementioned chart pattern is placed from the February high at 1.2402.

The 100-period Exponential Moving Average (EMA) at 1.2060 will act as a major barricade for the Pound Sterling.

Meanwhile, the Relative Strength Index (RSI) (14) has slipped below 40.00 from the 40.00-60.00 range, indicating that the bearish momentum could be triggered.

A confident break below February 17 low at 1.1915 will drag the Cable firmly towards January 5 low at 1.1875 followed by the round-level support at 1.1800.

On the contrary, a move above February 24 high at 1.2040 will drive the asset towards February 23 high around 1.2080. A breach of the latter will expose the asset to February 21 high of around 1.2140.

GBP/USD four-hour chart

GBP/USD

Overview
Today last price 1.1953
Today Daily Change -0.0066
Today Daily Change % -0.55
Today daily open 1.2019
 
Trends
Daily SMA20 1.2062
Daily SMA50 1.2143
Daily SMA100 1.197
Daily SMA200 1.1923
 
Levels
Previous Daily High 1.209
Previous Daily Low 1.1965
Previous Weekly High 1.2148
Previous Weekly Low 1.1928
Previous Monthly High 1.2402
Previous Monthly Low 1.1915
Daily Fibonacci 38.2% 1.2013
Daily Fibonacci 61.8% 1.2042
Daily Pivot Point S1 1.1959
Daily Pivot Point S2 1.19
Daily Pivot Point S3 1.1835
Daily Pivot Point R1 1.2084
Daily Pivot Point R2 1.2149
Daily Pivot Point R3 1.2208

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD holds losses below 1.0600 ahead of US NFP release

EUR/USD holds losses below 1.0600 ahead of US NFP release

EUR/USD is back in the red below 1.0600 in the early European morning on Friday. The US Dollar regains poise due to profit-taking and a softer risk tone. Traders refrain from placing fresh bets on the pair ahead of the critical US Nonfarm Payrolls data release. 

EUR/USD News
Bitcoin experiences volatility post $100K milestone

Bitcoin experiences volatility post $100K milestone

Bitcoin rebounds to $97,000 on Friday after a volatile drop to $90,500, following its $100K milestone the day before. Ethereum maintains bullish momentum above key support levels, signaling a potential rally toward $4,000. In contrast, Ripple exhibits bearish tendencies, hinting at further declines.

Read more
GBP/USD eases from multi-week high, trades with negative bias below mid-1.2700s

GBP/USD eases from multi-week high, trades with negative bias below mid-1.2700s

GBP/USD struggles to capitalize on its gains registered over the past three days. BoE Governor predicted four rate cuts in 2025 and weigh on the British Pound. Subdued USD price action could support the pair ahead of the US NFP report.

GBP/USD News
Gold price sticks to modest gains, lacks bullish conviction ahead of US NFP report

Gold price sticks to modest gains, lacks bullish conviction ahead of US NFP report

Gold price witnessed an intraday turnaround from over a one-week low touched on Friday. A softer risk tone, geopolitical risks, and trade war fears benefit the safe-haven commodity. Bets for a less dovish Fed cap gains for the XAU/USD ahead of the crucial US NFP report.

Gold News
What is NFP and how does it affect the Forex market?

What is NFP and how does it affect the Forex market? Premium

NFP is the acronym for the Nonfarm Payrolls report, a compilation of data reflecting the employment situation in the United States (US). It shows the total number of paid workers, excluding those employed by farms, the federal government, private households, and nonprofit organisations.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures