- January 10, 2025
- Posted By: james w
- Category: Market News
GBPUSD H4 Chart Predicts Bearish Momentum Continuation
The GBPUSD forex pair, commonly referred to as “Cable,” represents the exchange rate between the British Pound and the US Dollar. Known for its historical importance and volatility, it is a favored instrument for forex traders worldwide. For today’s GBP/USD fundamental overview the market eagerly awaits crucial U.S. economic indicators, including Non-Farm Payrolls (NFP), the Unemployment Rate, and Consumer Sentiment data from the University of Michigan, all of which are key drivers for USD valuation. Meanwhile, traders also consider the release of the UK’s NIESR GDP estimate, which provides insights into the health of the British economy.
The U.S. NFP data is a cornerstone of forex market volatility, with higher-than-expected job creation typically boosting the USD. Simultaneously, a drop in the unemployment rate would reinforce USD strength, whereas weaker numbers could pressure the currency. On the other hand, stronger-than-forecast NIESR GDP data for the UK could lend support to the Pound. Market participants should monitor these releases closely, as they are likely to trigger sharp moves in the GBPUSD forecast today.
Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h.
In the GBPUSD H4 chart, the pair’s price action is confined within a well-defined descending channel, signaling the Cable’s bearish bias. The Parabolic SAR dots are placed above the price candles, reinforcing the downward momentum. Meanwhile, the RSI is hovering around 33, suggesting the pair is approaching oversold territory but hasn’t confirmed a reversal yet. Combined, these indicators suggest that while the bearish momentum persists, traders should be cautious of potential rebounds from the channel’s lower boundary. The recent rejection from this level indicates a possible short-term bounce.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.