Technical Analysis: GBPUSD

GBPUSD fell below the 1.30 mark

On Wednesday, GBPUSD was under downward pressure. It fell below the 1.30 mark, reaching a new low of 1.2977 since August 20.

Expectations of a UK rate cut rose

On Wednesday, the UK Office for National Statistics released data showing that the UK's CPI annual rate in September was 1.7%, the lowest level since April 2021. The Bank of England is now expected to cut interest rates by 45 basis points by the end of the year, compared with 37 basis points before the data was released.

The USDX hit an 11-week high

On Wednesday, USDX hit an 11-week high, closing up 0.29% at 103.52 as investors ruled out the possibility of a sharp interest rate cut by the Federal Reserve at its next policy meeting and digested the possibility that Trump might win the election.

Technically speaking, the bearish market trend prevailed

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, MACD went downwards after death cross occurred, showing GBPUSD will fall further. Investors should focus on whether GBPUSD will break through the support at 1.295. It will fall further with potential support at 1.287 if it breaks below 1.295.

4-hour chart

On the 4-hour chart, GBPUSD was prone to fluctuation and declined in the short term. The bearish market trend prevailed. In terms of technical indicators, KDJ 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 1.303. It will fall further if it rebounds but is capped at 1.303.

Key resistance: 1.303,1.310

Key support: 1.295,1.287

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