GBP/USD Edges Higher But Bearish Correction Still Intact
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The GBP/USD pair posted a cautious intraday rebound in early Monday trading, attempting to recover ground after a recent wave of losses. Despite the uptick, the broader technical structure continues to reflect a short-term bearish correction, as the pair remains pressured below the 50-period EMA, a key dynamic resistance level.
While today's move signals some buying interest near recent lows, underlying momentum remains constrained. The pair is trading near a descending bias line, which has defined recent price action. Additionally, the Relative Strength Index (RSI) is showing renewed weakness after previously signaling overbought conditions, reinforcing the likelihood that any recovery could be short-lived unless supported by a shift in fundamentals or broader risk sentiment.
Overall, GBP/USD is showing signs of stabilization, but negative technical signals persist. Traders will be watching closely for confirmation of either a sustained break above key resistance levels or a continuation of the correction toward lower support zones, particularly ahead of Thursday’s Bank of England policy decision, which could provide clearer directional cues.
While today's move signals some buying interest near recent lows, underlying momentum remains constrained. The pair is trading near a descending bias line, which has defined recent price action. Additionally, the Relative Strength Index (RSI) is showing renewed weakness after previously signaling overbought conditions, reinforcing the likelihood that any recovery could be short-lived unless supported by a shift in fundamentals or broader risk sentiment.
Overall, GBP/USD is showing signs of stabilization, but negative technical signals persist. Traders will be watching closely for confirmation of either a sustained break above key resistance levels or a continuation of the correction toward lower support zones, particularly ahead of Thursday’s Bank of England policy decision, which could provide clearer directional cues.