Technical Analysis: GBPUSD

The pound reached a 3-month low

On Wednesday, as the US dollar climbed, and the BOE governor made dovish statements, GBPUSD declined. It reached 1.2481, marking the lowest level since 8^th June.

The interest rate hike is coming to an end, the BOE governor hinted

The interest rate may be around the hike, and the inflation is likely to fall sharply this year, the BOE governor Andrew Bailey said on Wednesday. His statements indicate that the interest rate is coming to an end.

Strong economic data supported the US dollar

US ISM Non-Manufacturing PMI (August) climbed from 52.7 to 54.5 Vs. 52.5 (forecast), according to the data from the ISM on Wednesday. Strong economic data boosted the US dollar index.

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, MACD experienced the death cross below the zero axis, showing the market trend is bearish. GBPUSD will fall further with potential support at 1.230 if it breaks below the support at 1.240.

4-hour chart

On the 4-hour chart, GBPUSD was prone to fluctuation and declined. The bearish market trend prevailed. In terms of technical indicators, KDJ went downwards after death cross occurred, showing GBPUSD will fall further. GBPUSD will decline further if it rebounds but is capped at the resistance at 1.255.

Key resistance: 1.255, 1.259

Key support: 1.240, 1.230

Generally speaking, as the BOE governor made dovish statements, and the US dollar climbed, there is a risk that GBPUSD will fall further in the short term. Investors should focus on US economic data during the day.