Technical Analysis: GBPUSD

GBPUSD fell for two consecutive days

On Wednesday, GBPUSD decreased for the second straight trading day. It ended down 0.59% at 1.3250.

UK services PMI failed to meet expectations in April

UK Services PMI (April) fell from 52.5 to 48.9 Vs. 51.5 (forecast), according to the data from Markit.

The USDX continued rebounding

On Wednesday, as the US trade negotiation released optimistic signals, the USDX continued rebounding. It ended up 0.932% at 99.9.

Technically speaking, the bearish market trend prevailed in the short term

the chart of the day

On the chart of the day, GBPUSD continued falling. The bearish market trend prevailed in the short term. In terms of technical indicators, KDJ went downwards after death cross occurred, showing that GBPUSD will fall further. Investors should focus on whether GBPUSD will break through the support at 1.320. It will decline further with potential support at 1.306 if it breaks below 1.320.

4-hour chart

On the 4-hour chart, GBPUSD was prone to fluctuation and fell. The bearish market trend prevailed in the short term. In terms of technical indicators, MACD went downwards after death cross occurred, showing that the market trend is bearish. Investors should focus on whether GBPUSD will break through the resistance at 1.332. It will fall further if it rebounds but is capped at 1.332.

Key resistance: 1.332,1.342

Key support: 1.320,1.306

Generally speaking, GBPUSD is more likely to fall further in the short term. Investors should focus on US economic data during the day.