GBP/USD: A false bullish breakout?

GBP/USD breaks above bearish channel, faces rejection near 50-SMA. Caution persists among traders as they await a close above 1.2600.
XM Group | 48 days ago
Stocktwits

GBP/USD stalled around the falling 50-day simple moving average (SMA) at 1.2525 soon after exiting the bearish channel on the upside. 

Was this a false bullish breakout? No, not as long as the price continues to trade above the channel’s upper boundary seen near 1.2400. The area is currently under examination along with the 23.6% Fibonacci retracement of the latest downtrend. Hence, failure to pivot there could disappoint traders, bringing the 1.2300 round level next into view, while a deeper fall might aim for a bearish extension below the crucial support area of 1.2100-1.2160.

According to the technical indicators, downside risks are still alive. The falling 20- and 50-day SMAs have yet to show any signs of improvement, while the RSI is losing steam marginally above its 50 neutral mark and the stochastic oscillator is set for a negative reversal. 

In the event the pair crosses above its 50-day SMA, the bulls must also jump the wall at 1.2580-1.2600, where the 38.2% Fibonacci mark and the broken support-turned-resistance trendline from March 2023 are sitting. A successful penetration higher could bolster buying appetite, lifting the price swiftly up to the 1.2700 number or even higher to the 50% Fibonacci of 1.2765 and the 200-day SMA at 1.2790.

All in all, GBP/USD moved out of a bearish formation, signaling a potential upward trend reversal. Despite this, the pair has yet to close above the wall of 1.2600, which might be a prerequisite for a major bullish wave.

Regulation: CySEC (Cyprus), ASIC (Australia), FSC (Belize), DFSA (UAE), FSCA (South Africa)
Tags: Analysis GBPUSD
Stocktwits
read more
ATFX Market Outlook 17th March 2025 

ATFX Market Outlook 17th March 2025 

U.S. consumer confidence dropped to its lowest level in March in nearly two and a half years, driven by concerns over Trump's tariffs, which could raise prices and harm the economy. Despite this, U.S. stocks rebounded as investors seized bargains after a turbulent week marked by recession fears.
ATFX | 11h 7min ago
ATFX Market Outlook 14th March 2025 

ATFX Market Outlook 14th March 2025 

U.S. equities plummeted sharply on Thursday, with the S&P 500 closing 10.1% below its record high of February 19, officially entering a correction phase. Cooling inflation data failed to alleviate investor anxiety, as escalating tariff tensions heightened concerns about renewed inflation and a potential economic downturn.
ATFX | 1 day ago
Global markets on March 13, 2025, shaped by a subdued US Dollar and escalating concerns over a potential trade war

Global markets on March 13, 2025, shaped by a subdued US Dollar and escalating concerns over a potential trade war

Global markets on March 13, 2025, are shaped by a subdued US Dollar and escalating concerns over a potential trade war, driven by new tariffs under the Trump administration. Investors are adopting a cautious stance, with safe-haven assets gaining traction and attention turning to the upcoming US Producer Price Index (PPI) inflation data, which could steer market direction later today.
Moneta Markets | 4 days ago
Global markets on March 13, 2025, shaped by a subdued US Dollar and escalating concerns over a potential trade war

Global markets on March 13, 2025, shaped by a subdued US Dollar and escalating concerns over a potential trade war

Global markets on March 13, 2025, are shaped by a subdued US Dollar and escalating concerns over a potential trade war, driven by new tariffs under the Trump administration. Investors are adopting a cautious stance, with safe-haven assets gaining traction and attention turning to the upcoming US Producer Price Index (PPI) inflation data, which could steer market direction later today.
Moneta Markets | 4 days ago
ATFX Market Outlook 13th March 2025 

ATFX Market Outlook 13th March 2025 

U.S. CPI data for February increased by 0.2% month-on-month, marking a slower pace of inflation as falling airfares partially offset the rise in housing costs. The weaker-than-expected inflation reading gives the Federal Reserve more room to maintain interest rates unchanged next week while evaluating the economic impact of ongoing trade tensions.
ATFX | 4 days ago
Market Update: March 12, 2025

Market Update: March 12, 2025

Financial markets are poised at a critical juncture with key currency pairs reacting to shifting dynamics and the looming US CPI report. Here’s a detailed look at today’s key market developments:
Moneta Markets | 5 days ago
ATFX Market Outlook 12th March 2025 

ATFX Market Outlook 12th March 2025 

U.S. stock futures rose slightly after a sharp sell-off on Wall Street, reflecting cautious optimism amid ongoing trade policy uncertainties. The Dow fell 1.1%, the S&P 500 dropped 0.76%, and the Nasdaq decreased by 0.18%. Notably, the S&P 500 experienced its largest two-day decline since early August, losing over 3.4%.
ATFX | 5 days ago
Tools
Economic Calendar
Market Hours
Interest Rates
Holidays Calendar
Forex Market
Forex Volatility
Forex Correlation
Forex News
forex analysis
COT Data
Liquidity
Forex Calculators
Forex Heat Map
Indicators Heatmap
Community
Community
Systems
Most Popular Systems
Strategies
Contests
Forex Charts
Forex Sentiment
Sentiment Indicator
Reviews
Brokers
Prop Trading Firms
VPS Services
Signal Providers
EA Programming Services
Affiliate Programs
PAMM Broker Services
Rebate Program Services
Trading Platforms
Expert Advisors
Crypto Exchanges
Trading Courses
Brokers
Forex Spreads
Forex Broker Quotes
Forex Broker Swaps
Forex Broker Volume
Forex Broker Promotions Press Release
Platform
Widgets
Features
API
RSS
Stock Portfolio
Affiliate Software
Advanced Charts
Support
FAQ
Help
Contact Us
Report a Bug!
About
Blog
© 2025 Myfxbook Ltd. All Rights Reserved.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions. Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice. Past performance is not indicative of future results.