The GBPUSD buyers attempted to regain control by moving above the converged 100-hour and 200-hour moving averages at 1.33238. However, momentum stalled and the price declined, shifting short-term control to sellers.

Support lies above a swing area between 1.3259 and 1.3273, yet it remains unstable. A confirmed break below this zone could enhance the bearish outlook.

Price Targets and Support Levels

If the price drops further, the targets are the April 23 low of 1.3232 and the next swing area near 1.3203. Breaking these levels may lead to increased selling pressure, and possibly reach the 38.2% retracement at 1.3160.

Resistance is denoted by the 200/100-hour moving averages at 1.3325. Sellers are currently steering the direction, contingent on maintaining pressure below the key support band.

The current situation reflects a clear rebuff from GBPUSD bulls at a well-known technical juncture: the convergence of the 100-hour and 200-hour moving averages, now situated around the 1.3325 region. Attempting to climb above this barrier, buyers briefly succeeded but were unable to hold the higher ground, suggesting we are seeing fading enthusiasm above this level. Once momentum paused, the price quickly gave back gains, reinforcing the position of sellers and giving control back to those driving the market downward.

From our perspective, the immediate concern lies with the support zone ranging from 1.3259 to 1.3273. This area has seen price action cluster before, but it offers little in terms of firm footing right now. Prices failing to hold above this could increase directional confidence for short-biased participants. A clean cut through here would likely validate further positional bias toward lower levels.

Market Focus and Expectations

The market will probably start to focus on successive targets, beginning with the April 23 trough at 1.3232. Should that get cleared, there’s a relatively thin cushion until the next swing zone around 1.3203. The further we drop, the more likely it is that previously hesitant sellers commit, particularly if the retracement down to the 38.2% Fibonacci level at 1.3160 becomes the focal point. It’s there, in that area, where broader sentiment may transition more firmly in favour of downward bias.

Those positioned or analysing from a momentum- or trend-based approach will already know that hourly moving averages often provide structure to short-term strategies. Right now, with the 100-hour and 200-hour lines overlapping near 1.3325, this junction becomes a visual ceiling. Any renewed attempt to ascend would need to push cleanly above that zone to reset short-term directional control.

At the moment, the technical profile shows selling interest advancing whenever the price tries to reach back into the old resistance corridor. As long as the price stays underneath those averages and fails to reclaim higher ground, the burden stays with buyers to provoke any shift in momentum. The price is tracking lower, and we’re watching levels give way one after another, which can often create reactive behaviour as stops get triggered and shorter-term models adapt.

We’re not seeing sustained upside attempts or strong reversals in recent candles, only brief tests that get quickly faded. In environments like this, pressure tends to build incrementally. The pace may not be dramatic, but the direction so far remains downward unless something material interrupts the current flow.

Create your live VT Markets account and start trading now.