GBPUSD Bearish

Analysis Price: 1.3272 (Updated: 17 May 2025, 13:36 UTC)

Comprehensive analysis for GBPUSD showing predominantly bearish sentiment with 79% of traders in short positions. Market structure, technical patterns, and key levels examined across multiple timeframes.

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Signal Overview

Bearish High Confidence Medium Risk

Market Consensus:

21% Long

79% Short

Valid Timeframes:

M15 H1 H4 D1

Signal Analysis:

The analysis indicates a high confidence bearish bias for GBPUSD (signal strength: 58%). Supporting factors include: Technical patterns identified: Head and Shoulders (H1); GBP is showing relative weakness against USD (diff: 21%). Risk assessment for this trade is medium. This signal is most valid on the M15, H1, H4, D1 timeframes.

Sentiment Analysis

LONG SHORT

46% 54%

Historical Sentiment (7 Days)

Sentiment Interpretation

Neutral sentiment with a balanced distribution between long and short positions. This suggests indecision in the market, which could precede a significant move once a clear direction emerges.

Support & Resistance Analysis

Resistance Levels

R1: 1.3332 0.45% ↑

Analysis Price: 1.3272

Support Levels

S1: 1.3170 0.77% ↓

Market Regime:

Range

Analyst Bias:

Unknown

Direction Probability:

50%

Price Position Analysis

Price is between support at 1.3170 (0.77% below analysis price) and resistance at 1.3332 (0.45% above), with slightly closer proximity to resistance. Watch for rejection confirmation at resistance or break above.

Chart Pattern Analysis

79%

Head and Shoulders

Reliability:

79%

Detected: May 17, 02:51

Pattern Analysis Interpretation

Predominantly bearish patterns detected across timeframes, suggesting downward pressure. The most reliable pattern is a bearish Head and Shoulders on the H1 timeframe with 79% historical reliability. This pattern is currently only confirmed on the H1 timeframe.

High Probability Zones

Resistance Zone

82%

Zone Level:

1.3738

analysis price:

1.3272

Distance:

3.51%

Confluence Factors:

Shooting Star 127% Extension Volume Spike

Valid on Timeframes:

H1 H4 D1 W1

High Probability Zones Interpretation

A high probability (82%) resistance zone exists at 1.3738, currently 3.51% away from price. Keep this level on watch for potential future selling opportunities if price moves higher.

Volatility Analysis

Select Timeframe:

Daily Range (pips):

84.0

Volatility Regime:

Low

Volatility Level:

10-Day ATR Trend

Volatility Interpretation (H1)

GBPUSD is exhibiting low volatility (6 percentile) with an expected daily range of just 84.0 pips. This reduced movement typically indicates consolidation or indecision in the market. Consider tighter stop losses but be aware that breakout potential increases after periods of low volatility.

Correlation Analysis

Top Correlations with GBPUSD

AUDUSD

0.90

GBPCAD

0.90

EURUSD

0.86

USDCHF

-0.82

GBPJPY

0.78

Correlation Interpretation

Understanding how GBPUSD correlates with other pairs can help with portfolio diversification and risk management. Strong positive correlations (above 0.7) indicate pairs that move similarly, while strong negative correlations (below -0.7) show pairs that typically move in opposite directions.

GBPUSD shows strong positive correlation with: AUDUSD, GBPCAD, EURUSD, GBPJPY. This means these pairs tend to move in the same direction. Trading in the same direction on multiple correlated pairs increases portfolio risk, while finding divergences between correlated pairs can highlight potential reversal opportunities.

GBPUSD shows strong negative correlation with: USDCHF. This means these pairs tend to move in opposite directions. Negatively correlated pairs can be useful for hedging strategies or to confirm signals (a buy signal in one pair would be supported by a sell signal in the negatively correlated pair).

Currency Strength Analysis

Select Timeframe:

GBP

0.35

Strong

USD

-0.24

Neutral

Relative Strength:

0.59

Bullish Bias

Currency Strength Interpretation (M15)

GBP is significantly stronger than USD on the M15 timeframe, with a relative strength of 0.59. This suggests a strong bullish bias for GBPUSD. However, this bias is primarily driven by the strength of GBP.

How to Use This Analysis

This comprehensive analysis provides multiple perspectives on GBPUSD to help inform your trading decisions:

Sentiment Analysis: Use to understand market positioning and potential contrarian opportunities
Support & Resistance: Identify key price levels for setting stop losses and take profits
Pattern Analysis: Recognize technical formations that may indicate continuation or reversal
Volatility Analysis: Adjust position sizing and risk management based on current market conditions
Currency Strength: Compare the relative performance of individual currencies within the pair
Correlation Analysis: Understand how this pair moves in relation to others for portfolio diversification

For optimal results, consider how these different factors align. The strongest trading opportunities typically occur when multiple analytical tools show confirmation across different timeframes.