Technical Analysis: GBPUSD

GBPUSD decreased slightly

On Wednesday, GBPUSD rebounded and then fell. It ended down 0.03% at 1.2685.

The Bank of England cut the interest rate for the first time in four years

Last week, the Bank of England cut the interest rate by 25 basis points from 5.25% to 5%. It reduced the interest rate for the first time since March 2020. The UK inflationary pressure has fully eased, which supported the Bank of England cutting the interest rate, according to the market analysis.

The USDX reached the 103 mark again

On Wednesday, the USDX rebounded from a seven-month low and reached the 103 mark. It ended up 0.27% at 103.17.

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

the Chart of the Day

On the chart of the day, 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. Investors should focus on whether GBPUSD will break through the support at 1.261. It will decline further to the 1.250 mark if it breaks below 1.261.

4-hour chart

On the 4-hour chart, GBPUSD was prone to fluctuation and declined in the short term. The market trend is bearish. In terms of technical indicators, MACD went downwards after death cross occurred below the zero axis, showing that the bearish market trend prevailed. Investors should focus on whether GBPUSD will break through the resistance at 1.275. It will decline further if it rebounds but is capped at 1.275.

Key resistance: 1.275, 1.284

Key support: 1.261, 1.250

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