As of May 29, 2025, GBP/USD has clearly broken below the 1.3450 support line on the 1-hour chart, accelerating its downward trend. This article provides an in-depth look at the market using key technical analysis indicators such as MACD, moving averages, RSI, and volume.
The short-term moving average (blue: 50 EMA) is approaching the long-term moving average (red: 200 SMA), indicating signs of a "death cross." The downward slope of the moving averages supports the case for a strengthening bearish trend.
The MACD line is below the signal line, with the histogram expanding further into negative territory. This suggests the trend is likely to continue without a short-term rebound. For more information on MACD, please refer to this link.
The RSI has fallen near the 30 level, approaching the "oversold" zone. However, since the momentum is clearly downward, any rebound is unlikely to signal a trend reversal in the short term.
Volume increased during the break below 1.3450, confirming the validity of the breakout. This kind of "volume-supported breakdown" is a technical sign of potential further decline.
| Level | Price | Meaning/Justification |
|---|---|---|
| Short-Term Resistance | 1.3500 | Psychological threshold and recent high |
| Next Target | 1.3370 | Support line from mid-May |
| Short-Term Support | 1.3430 | Recent drop starting point |
| Medium-Term Support | 1.3300 | Previous high-volume zone |
Given the overall bearish technical signals, a sell-on-rally strategy is considered effective. Historical levels like 1.3370 and 1.3300 are likely to act as the next targets. If rebound attempts remain limited, these could be seen as entry points.
Additionally, UK economic data and U.S. interest rate trends will have significant influence. For the latest economic indicators in Japanese, refer to the following links:
With GBP/USD breaking below the critical 1.3450 level, a clear shift to a bearish trend is underway. Based on momentum indicators, moving averages, and volume confirmation, the market currently favors short positions. For more details on momentum, refer to this link.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. All trading decisions should be made at your own discretion.
This article is intended for informational purposes only and does not constitute financial or investment advice. The analyses and strategies mentioned are based on past data and current market conditions, and may be subject to change in the future. When making investment decisions, always conduct your own research and consult a professional if necessary.
Superior trade execution & trading conditions with the NDD method.
The online FX industry provides a platform for investors worldwide to engage in the buying and selling.
Subscribe to our daily newsletter and get the best forex trading information and markets status updates
Trade within minutes!
Comment (0)