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

Summary
Urgency
Analytic
Sebastian Seliga
Start trade
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

EUR/USD. Analysis and Forecast

At the start of the new week, the EUR/USD pair remains within a moderate range and trades in a narrow channel. Currently, quotes are hovering around the 1.1650 level, showing

Irina Yanina 12:38 2025-07-21 UTC+2

EUR/USD. July 21st. ECB Meeting Unlikely to Change Anything

On Friday, the EUR/USD pair continued its upward movement following two rebounds from the 100.0% Fibonacci retracement level at 1.1574. Consolidation above the 1.1645 level didn't lead to significant changes

Samir Klishi 12:26 2025-07-21 UTC+2

Forecast for GBP/USD on July 21, 2025

On the hourly chart, the GBP/USD pair on Friday rebounded from the 76.4% Fibonacci retracement level at 1.3470, reversing in favor of the U.S. dollar and pulling back slightly

Samir Klishi 12:20 2025-07-21 UTC+2

Forex forecast 21/07/2025: EUR/USD, GBP/USD, USD/JPY, Gold, Oil 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 10:04 2025-07-21 UTC+2

Trading Signals for GOLD (XAU/USD) for July 21-25, 2025: sell below $3,359 (200 EMA - 6/8 Murray)

The Eagle indicator is showing overbought signs, so a technical correction is imminent in the coming days. Therefore, we must pay attention to the 6/8 Murray level. Below this zone

Dimitrios Zappas 08:18 2025-07-21 UTC+2

Trading Signals for EUR/USD for July 21-25, 2025: buy above 1.1590 (200 EMA - 7/8 Murray)

Early in the European session, the euro is trading around 1.1620, retreating after reaching its high around 1.1650. The euro is likely to consolidate above

Dimitrios Zappas 08:17 2025-07-21 UTC+2

Trading Signals for BITCOIN for July 21-25 2025: sell below $119,00 (6/8 Murray - 21 SMA)

If the Bitcoin price encounters strong resistance below $119,000, it is likely to resume its bearish cycle, and we could expect it to reach the 200 EMA located around 112,148

Dimitrios Zappas 08:17 2025-07-21 UTC+2

If the Kiwi manages to break above its pivot level, the Kiwi has the potential to strengthen today, Monday, July 21, 2025.

NZD/USD, Monday, July 21, 2025 Although technically, all indicators still point to weakness, the emergence of divergence between price movement and the RSI(14) indicator indicates a potential reversal today

Arief Makmur 06:25 2025-07-21 UTC+2

EUR/USD has the potential to strengthen towards its nearest resistance today, Monday, July 21, 2025.

EUR/USD, Monday, July 21, 2025 Although the 50-day moving average (EMA) is still below the 200-day moving average (EMA), indicating a bearish neutrality, and the RSI (14)

Arief Makmur 06:24 2025-07-21 UTC+2

EUR/USD Forecast for July 21, 2025

The euro continues to trade sideways within the range of 1.1535–1.1692, staying between the balance line (red) and the MACD line (blue). The Marlin oscillator is slowly declining in negative

Laurie Bailey 04:59 2025-07-21 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.