GBP/USD Forecast: Holds Above 1.3400 But Bearish Trend Remains Strong
The GBP/USD pair is trading slightly above the 1.3400 level, around 1.3420, during the early Asian session. Even though the price has shown a small recovery for two straight days, the overall trend is still bearish. The pair remains stuck in a downward channel, which keeps the pressure on the British pound, also known as “cable.”
Technical indicators show weak momentum. The RSI indicator is still below 50, which supports the bearish bias. Also, the price is trading under the 9-day Exponential Moving Average (EMA), which suggests sellers are still in control.
On the downside, the nearest support is at 1.3365. If GBP/USD breaks below this level, it could fall further toward 1.3300, which is the lower edge of the current price channel.
On the upside, resistance is seen near 1.3460 (where the price meets the 9-day EMA) and then at 1.3465 (50-day EMA). If the pair can break above these levels, it could lead to a stronger rebound, possibly moving towards 1.3788 in the longer term.
The current GBP/USD forecast still shows a bearish trend. As long as the pair stays below key moving averages, the downside pressure in the Forex market outlook remains strong.
Impact:
GBP/USD could fall toward 1.3300 if bearish signals stay active. But if it breaks above 1.3460, a short-term recovery might begin, leading to more gains.