Gbp/Usd forecast: bearish bias persists below 1.2900
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The GBP/USD pair remains under pressure near 1.2910 during the early European session on Monday. Driven by a strong US Dollar following Donald Trump’s election win, the pair’s bearish outlook persists as traders anticipate reduced probability of aggressive Fed rate cuts. The Bank of England's cautious stance adds complexity, hinting at a gradual reduction of policy restraint, which could limit GBP losses but not reverse the downward bias.
Bearish Outlook for GBP/USD with Downside Targets
On the daily chart, GBP/USD maintains a negative structure, struggling below its 100-day Exponential Moving Average (EMA) of 1.2983. This technical indicator continues to signal downside momentum, reinforced by the 14-day Relative Strength Index (RSI), which sits below the neutral 50 mark, indicating a bearish trend.
The initial support level lies at 1.2875, representing the November 7 low. If GBP/USD falls further, traders can look toward the next significant support in the 1.2850-1.2840 zone, which aligns with the lower Bollinger Band boundary and the October 31 low. A move below this range could further solidify the bearish momentum, setting the pair up for deeper losses.
Upside Resistance and Potential for Reversal
On the upside, immediate resistance is positioned at the 100-day EMA, currently at 1.2983, with a key psychological level at 1.3000. A clear break above this level could shift the outlook, enabling GBP/USD to target the November 6 high at 1.3048, but this scenario would require a strong catalyst to invalidate the prevailing bearish bias.
Conclusion
The GBP/USD pair remains on a downward path, underpinned by USD strength and limited support from the BoE’s cautious stance. While minor rebounds may occur, the bearish trend is likely to persist unless GBP/USD can decisively break above 1.3000, which would indicate a potential trend reversal.
Bearish Outlook for GBP/USD with Downside Targets
On the daily chart, GBP/USD maintains a negative structure, struggling below its 100-day Exponential Moving Average (EMA) of 1.2983. This technical indicator continues to signal downside momentum, reinforced by the 14-day Relative Strength Index (RSI), which sits below the neutral 50 mark, indicating a bearish trend.
The initial support level lies at 1.2875, representing the November 7 low. If GBP/USD falls further, traders can look toward the next significant support in the 1.2850-1.2840 zone, which aligns with the lower Bollinger Band boundary and the October 31 low. A move below this range could further solidify the bearish momentum, setting the pair up for deeper losses.
Upside Resistance and Potential for Reversal
On the upside, immediate resistance is positioned at the 100-day EMA, currently at 1.2983, with a key psychological level at 1.3000. A clear break above this level could shift the outlook, enabling GBP/USD to target the November 6 high at 1.3048, but this scenario would require a strong catalyst to invalidate the prevailing bearish bias.
Conclusion
The GBP/USD pair remains on a downward path, underpinned by USD strength and limited support from the BoE’s cautious stance. While minor rebounds may occur, the bearish trend is likely to persist unless GBP/USD can decisively break above 1.3000, which would indicate a potential trend reversal.