Gold prices buoyed by tariff fears; US duties on 1-kilo bars spur supply concerns
GBP/USD is trading around 1.3304 after recently bouncing off the 1.3150–1.3180 support zone. This follows a sharp decline from the 1.3800 peak, confirming a bearish trend shift that has dominated since early July. The pair is currently consolidating below both the 15-day and 20-day simple moving averages, which are both downward sloping—reinforcing a bearish short-term outlook.
Key Observations:
- The recent rebound from near 1.3150 shows early signs of stabilisation, but momentum remains weak.
- Price is still trading below both moving averages, and they are now acting as dynamic resistance levels.
- A lower high structure is forming, and unless GBP/USD reclaims 1.3400, the downtrend remains intact.
Key Technical Levels:
- Immediate Resistance: 1.3380–1.3400 (15/20 moving average zone)
- Breakout Resistance: 1.3500
- Immediate Support: 1.3180
- Major Support Zone: 1.3000 psychological level
Bias: Bearish (With Rebound Risk)
As long as GBP/USD remains capped below the 1.3400 area, the path of least resistance is to the downside. A failure to reclaim the moving averages would likely see renewed selling pressure, targeting 1.3150, and potentially 1.3000. However, a strong daily close above 1.3400 would begin to shift short-term bias toward a recovery phase.
The trend structure favours bears, but near-term price action suggests a possible pause or mild pullback within the larger downtrend.
