GBP/USD Sell Opportunity As Long As Below 1.3800

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In the H4 chart, GBP/USD confirms breaks and is stable below the ascending trend line. However, technically it has started its downward trend.

As the British government's proposals to tackle its record budget deficit and inflation have been outlined, it is unclear how Mr. Sunak will be able to tame both issues.

The GBP/USD pair has lost strength in early European sessions on Wednesday as investors look for clues about what might come next from negotiating parties. At the same time, technical indicators point towards a bearish trend over the coming days or weeks.


The mystery lies with these two major concerns and finding innovative solutions that appeal broadly across party lines after eight years of Tony Blair's Labour Party administration, during which time spending more than we earned resulted.

Brexit has resulted in an "economic catastrophe" for the UK, said Thierry Breton. The Internal Market Commissioner of Europe added that they'd seen a lot of bad faith from Britain and predicted their exit would significantly impact all levels: economic, political, and social infrastructure. This is only getting more apparent with every passing day since article 50 was triggered last year.

Technical View:

As long GBP/USD is below 1.3800, it will consider as a downtrend. From the present rate, immediate resistance is identified at 1.3700.
Breaking below, we should enter for sell, not before.

Breaking below 1.3700, our first target is 1.3620, 2nd target to the downside is 1.3550, and the final target 1.3450.

On the other hand, breaking above the 1.3800 downtrends will e invalid. So after breaking above 1.3800, GBP/USD may test the 1.3920/1.3950 price zone again.