GBPUSD Analysis: Pound Lacks Momentum to Rise

Fundamental Analysis of GBPUSD

GBPUSD Key Takeaways

• China-US trade consultation: The first meeting of the China-US trade consultation mechanism began in London, UK on Monday. The first meeting of the China-US trade consultation mechanism will continue on Tuesday local time.
• Weakened US inflation expectations: US consumer inflation expectations fell across the board in May, the first time since 2024. US Treasury yields generally fell by more than 3 basis points, slightly giving up the gains on last week’s non-agricultural day. The US dollar index fluctuated and weakened, hovering around the 99 mark.

Technical Analysis of GBPUSD

GBPUSD Daily Chart Insights

• Stochastic oscillator: %K line (blue) has fallen from the overbought area (above 80) and crossed below %D line (red), forming a bearish death cross signal. Currently, both lines are running downward in the upper middle area. This indicates that the upward momentum of the market has weakened in the short term, and there may be a certain need for a correction or consolidation.
• MA support: In the recent rise, the purple 13EMA continues to provide good dynamic support for prices. Although the price has slightly corrected, it is still stubbornly holding near the 13EMA, but if the exchange rate falls below this MA, the pound will usher in a deep correction probability.

GBPUSD 2-hour Chart Analysis

• Stochastic oscillator: The stochastic indicator at the bottom shows that the %K line (blue) has fallen from a relatively high level and crossed the %D line (red). Both lines are currently running downward in the middle area. This indicates that the upward momentum of the market has weakened in the short term, and there is a certain amount of pullback pressure or the possibility of continued consolidation.
• MA signal: The purple 13EMA and the black 65EMA have been entangled many times, and the price has also crossed these two MAs several times. The current price has slightly fallen below the 13EMA and 65EMA, but is still far above the 200EMA. This convergence and entanglement of MAs at high levels usually indicates that the short-term long and short forces are balanced, and the market is accumulating strength and waiting for new direction guidance.

GBPUSD Pivot Indicator

• According to the trading central in Ultima Markets APP, the central price of the day is established at 1.3525,
• Bullish Scenario: Bullish sentiment prevails above 1.3525, first target 1.3565 , second target 1.3580;
• Bearish Outlook: In a bearish scenario below 1.3525, first target 1.3505, second target 1.3490.

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