GBP/USD simply turned decrease from a significant space of curiosity!
Does this make the pair prepared for a longer-term bearish reversal?
Let’s get extra clues from the every day timeframe:
GBP/USD Day by day Foreign exchange Chart by TradingView
In case you missed it, the U.Ok. simply printed a cooler-than-expected CPI report in February. What’s extra, the U.Ok.’s Workplace for Price range Accountability (OBR) simply halved its 2025 development forecasts from 2.0% to 1.0% even because it raised its 2026 and 2027 development estimates.
In the meantime, the U.S. greenback is making protected haven pips rain due to U.S. tariff uncertainties and a constructive U.S. sturdy items report.
Keep in mind that directional biases and volatility circumstances in market worth are usually pushed by fundamentals. In case you haven’t but achieved your homework on the U.S. greenback and British pound, then it’s time to take a look at the financial calendar and keep up to date on every day basic information!
GBP/USD has been trending greater for many of 2025, however its newest crimson candle beneath the 1.3000 psychological stage is beginning to forged doubt on whether or not the bullish run has extra fuel within the tank.
Up to now, the pair nonetheless can’t punch by way of the 1.3000 to 1.3100 zone. That space traces up with the R2 Pivot Level at 1.2980 and marks the highest of a variety on the every day chart.
Is that this the start of a longer-term downtrend?
Preserve a watch out for extra crimson candlesticks and a gradual buying and selling beneath the 1.2900 psychological stage.
If bearish momentum builds beneath this consolidation zone, it may set off extra promoting and drag GBP/USD down towards the 1.2800 space close to the R1 Pivot Level at 1.2778 and the 200 SMA. And if issues actually go south, the pair may even slip towards the mid-range help close to 1.2600.
That mentioned, it’s additionally doable that the bulls are simply taking a breather.
If GBP/USD begins printing bullish candles once more, we may see a push again to the 1.3000 resistance zone.
A robust transfer above 1.3100 would possibly even pave the best way for a run on the 1.3400 resistance stage.
Whichever bias you find yourself buying and selling, don’t overlook to follow correct danger administration and keep conscious of top-tier catalysts that would affect general market sentiment!
