GBP/USD - A BEARISH OUTLOOK

GBP/USD Fundamental and Technical Analysis for 28 September 2023

Subtitle: GBP/USD remains under pressure as the US dollar continues to strengthen against a basket of major currencies. Technical indicators on the 30-minute, 4-hour, and daily charts suggest that further downside is likely in the near term.

Fundamental Analysis:

The British pound has been under pressure in recent weeks due to a number of factors, including:

Rising inflation: Inflation in the UK hit a 40-year high of 10.1% in July 2023, putting further pressure on household budgets and businesses.
Weak economic growth: The UK economy is expected to grow by just 0.5% in 2023, according to the IMF, which is the slowest pace of growth among the G7 economies.
Political uncertainty: The UK is currently facing a number of political challenges, including the ongoing war in Ukraine, the cost of living crisis, and the ongoing negotiations over the Northern Ireland Protocol.

Technical Analysis:

On the 30-minute chart, GBP/USD is trading below both its 50- and 100-period moving averages, which is a bearish sign. The RSI indicator is also below 50, suggesting that the pair is oversold. However, the MACD indicator is crossing below its signal line, which is a bearish signal.

On the 4-hour chart, GBP/USD is trading below a descending trendline. The pair is also below its 50- and 100-period moving averages. The RSI indicator is below 50, and the MACD indicator is crossing below its signal line.

On the daily chart, GBP/USD is trading below a descending triangle pattern. The pair is also below its 50- and 100-period moving averages. The RSI indicator is below 50, and the MACD indicator is crossing below its signal line.

Overall, the technical indicators on all three timeframes suggest that GBP/USD is likely to continue to decline in the near term.

Conclusion:

GBP/USD remains under pressure due to a number of fundamental factors, and the technical indicators on all three timeframes suggest that further downside is likely in the near term. Traders should be cautious going long on GBP/USD at this time.

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This analysis represents is based on the information at the date it is posted.
This analysis does not represent professional and/or financial advice.
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