The analysis of the monthly chart indicates that while there may be arguments for an uptrend, the high at $1.3142 needs to be surpassed for a long-term uptrend confirmation. The next layer of resistance at $1.3111 is also a significant level to watch. However, the support level at $1.2173 is seen as a potential downside target for GBP bears. The trend currently favors sellers, especially with the ongoing downtrend on the daily chart, which has been forming lower lows and lower highs since hitting a peak at $1.2894.
Relative Strength Index Analysis
Both the monthly and daily charts show that the Relative Strength Index (RSI) is testing the underside of the 50.00 centreline, suggesting possible resistance. This could further strengthen the bearish sentiment in the market.
H1 Timeframe Analysis
On the H1 timeframe, price action closed the week below resistance at $1.2530, just before the $1.25 level. There is potential resistance ahead at $1.2583-$1.2560, which sellers may target given the southbound longer-term trend and the daily resistance at $1.2527. This could lead to a push towards $1.25, followed by support levels at $1.2459 and possibly $1.24.
The overall analysis of the GBP uptrend suggests that there are strong indications favoring sellers in the market. With key resistance levels to watch and the RSI signaling possible resistance, it is likely that the bearish trend will continue in the near term. Traders should be cautious and closely monitor these levels for potential trading opportunities.
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