The GBPUSD pair is strongly bearish below the 1.2785 level. However, as the new month starts, will the pair continue the downward trend? Find out from today's technical analysis.
31 October, OctaFX – The British pound is testing towards the 1.2700 support level against the US dollar following Tuesday’s bearish technical break below the 1.2785 level.
The pairs 2018 trading low, at 1.2861, is now in focus with a move below this key level likely to expose the GBPUSD pair to losses towards the 1.2550 level.
Buyers need to move price above the 1.2730 level to negate immediate selling pressures.
GBPUSD Technical Analysis
The GBPUSD pair moved lower in the Asian session and reached an intraday low of 1.2700. This was the lowest it has been since August 23.
The double EMA indicator show that the pair’s path of least resistance is downwards. This is confirmed by the MACD, which is at a multi-monthly low.
However, as the new month starts, and as the pair edges closer to the important support of 1.2665, traders should be cautious about further bearish bets.
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