The monthly chart for GBP shows a potential uptrend, but the key resistance level at $1.3142 needs to be surpassed for a confirmed long-term uptrend. The monthly support level at $1.2173 is seen as the next downside target for GBP bears, indicating a bearish trend in the long term.
Daily Chart Trend
The daily chart for GBP supports the bearish trend, with clear lower lows and lower highs since hitting a peak at $1.2894. The Relative Strength Index (RSI) on both the monthly and daily charts is testing the underside of the 50.00 centerline, suggesting potential resistance.
H1 Timeframe Observation
Looking at the H1 timeframe, the price action ended the week below resistance at $1.2530, just before the $1.25 mark. The resistance levels at $1.2530 and $1.2583-$1.2560 could be areas where sellers may target this week, aiming for $1.25 and potentially lower support levels at $1.2459 and $1.24.
While there are some signs of a possible uptrend in the monthly chart, the key resistance level needs to be breached for a confirmed upward movement. The daily and H1 charts both indicate a bearish trend, with potential resistance levels to watch out for in the coming week. Therefore, traders should be cautious and monitor these key levels closely to make informed decisions regarding GBP trading.