empty
01.03.2024 09:50 AM
Technical Analysis of GBP/USD for March 1, 2024

GBP/USD Analysis: Navigating a Narrow Range Amidst Market Anticipation

Key Takeaways:

  1. The GBP/USD pair has breached a short-term supply zone, hinting at bullish momentum with a potential move toward the 1.2691 level.
  2. A mix of buy and sell signals from technical indicators and moving averages suggests a market in consolidation, awaiting a decisive breakout.
  3. Sentiment has shifted slightly towards bears in the last three days, despite a generally bullish stance over the past week.

The GBP/USD pair has recently demonstrated a bullish inclination, successfully breaching the short-term supply zone. A sustained move above the 100-day moving average (MA) suggests potential for further upward momentum. However, the pair is currently consolidating gains, indicating a pivotal moment for traders as the market seeks direction.

This image is no longer relevant

Technical Highlights:
  • Uptrend Attempts: The pair's climb above the short-term supply zone (1.2613 - 1.2595) and subsequent local peak at 1.2628 indicates a positive outlook. The ascending momentum is intact, which could entice the bulls to propel the pair beyond the 100 MA (1.2625), targeting 1.2691.
  • Intraday Supports: Immediate technical support levels are established at 1.2612, 1.2603, and 1.2595. A dip below these floors may shift short-term sentiment to bearish, necessitating vigilance among bulls.
  • MA Confinement: The GBP/USD oscillation between the 50 MA (1.2620) and 100 MA (1.2579) underscores a horizontal trend, with market participants on the lookout for a decisive break. The crucial short-term support marks at 1.2517, a swing low from February 5th, 2024, remain vital to the pair's resilience.
Indicator Insights:
  • Mixed Indicator Signals: The technical indicators present a varied landscape, with 10 flashing 'Buy', 6 signaling 'Sell', and 6 remaining neutral. This divergence suggests a market in contemplation, weighing its next move.
  • Moving Average Trends: An overwhelming majority of moving averages (17 out of 18) suggest a 'Sell' signal, with only one contrarian 'Buy' signal. This could indicate underlying bearish pressure despite the recent bullish activity.

This image is no longer relevant

Sentiment Analysis:
  • Bullish Undertone: The sentiment scoreboard reflects a predominantly bullish stance, with a 55% majority over the bears' 45%. This bullish trend is consistent with last week's sentiment. However, a recent shift shows a three-day bearish turn (44% bulls vs. 56% bears), hinting at a potential change in trader sentiment.
Pivot Point Projections:
  • Resistance Levels: WR3 (1.27136), WR2 (1.26917), WR1 (1.26836)
  • Pivot Line: Weekly Pivot at 1.26698
  • Support Levels: WS1 (1.26617), WS2 (1.26479), WS3 (1.26260)

The GBP/USD pair currently hovers near a critical juncture, with bulls eager to cement their control. The recent bullish sentiment on the scoreboard and the technical breach above the supply zone provide a constructive backdrop. Nevertheless, the predominance of 'Sell' signals from moving averages and a shift to bearish sentiment in the last three days introduce caution. As the currency pair wrestles with moving average thresholds, the directional bias remains somewhat uncertain.

Useful Links

Important Notice

The begginers in forex trading need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp market fluctuations due to increased volatility. If you decide to trade during the news release, then always place stop orders to minimize losses.

Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. For successful trading, you need to have a clear trading plan and stay focues and disciplined. Spontaneous trading decision based on the current market situation is an inherently losing strategy for a scalper or daytrader.

#instaforex #analysis #sebastianseliga

Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Trading Signals for GOLD (XAU/USD) for April 8-10, 2025: buy above $2,993 (200 EMA - rebound)

Our trading plan for the coming hours is to sell gold below 3,020, as technically there is a bearish trend channel. If gold fails to break above this level

Dimitrios Zappas 14:56 2025-04-08 UTC+2

Trading Signals for EUR/USD for April 8-10, 2025: sell below 1.0986 (200 EMA - 6/8 Murray)

If the euro breaks the downtrend channel, we could expect a new upward movement that could push EUR/USD up to 1.1051, last week's high, the 7/8 Murray at 1.1115

Dimitrios Zappas 14:54 2025-04-08 UTC+2

Forecast for EUR/USD on April 8, 2025

On Monday, the EUR/USD pair made two rebounds from the 76.4% retracement level, turned in favor of the euro, and consolidated above the 1.0944–1.0957 zone. As a result, the upward

Samir Klishi 10:57 2025-04-08 UTC+2

Forecast for GBP/USD on April 8, 2025

On the hourly chart, the GBP/USD pair continued its decline on Monday and ended the day near the 1.2709 level. Over just two trading days, the pound dropped by roughly

Samir Klishi 10:53 2025-04-08 UTC+2

Forex forecast 08/04/2025: EUR/USD, USD/JPY, Oil, SP500, and Bitcoin

Useful links: My other articles are available in this section InstaForex course for beginners Popular Analytics Open trading account Important: The begginers in forex trading need to be very careful

Sebastian Seliga 10:50 2025-04-08 UTC+2

Technical Analysis of Intraday Price Movement of Gold Commodity Instrument, Tuesday 08 April 2025.

After the Divergence appeared between the movement of the Gold price with the Stochastic Oscillator indicator on the 4-hour chart and was also confirmed by its price movement which

Arief Makmur 09:32 2025-04-08 UTC+2

Technical Analysis of Intraday Price Movement of Crude Oil Commodity Instrument, Tuesday 08 April 2025.

With the appearance of Convergence between the daily price movement of the Crude Oil commodity instrument and the Stochastic Oscillator indicator, it confirms that in the next few days

Arief Makmur 09:32 2025-04-08 UTC+2

Forecast for EUR/USD – April 8, 2025

On Monday, the euro reached the 1.1027 target level but dropped below 1.0955. Nonetheless, the single currency achieved its primary goal, reaffirming its intent to resume growth. Currently, the price

Laurie Bailey 05:03 2025-04-08 UTC+2

Forecast for GBP/USD – April 8, 2025

On Monday, the British pound showed another day of weakness, falling by 180 pips. As a result, the target level of 1.2714 was reached, and an ascending price channel

Laurie Bailey 05:03 2025-04-08 UTC+2

Forecast for USD/JPY – April 8, 2025

USD/JPY After reaching the target range of 145.08/91, the price corrected with increased volatility down to the balance line on the daily timeframe and began the current day with

Laurie Bailey 05:03 2025-04-08 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.