**GBP/USD Is Attempting to Correct the Main Bearish Trend**
*Analysis (15-10-2025)*
*Adapted and expanded from the original analysis by Economies.com*
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## Introduction
The GBP/USD currency pair, often cited as one of the most significant and actively traded instruments in global forex markets, has been navigating an extended period of downward pressure. Market participants and analysts have observed the Pound Sterling struggle amid mounting macroeconomic headwinds both in the UK and abroad. However, recent price action indicates that GBP/USD is showing initial signs of a bullish corrective movement within its broader bearish framework.
This article provides an in-depth analysis of the:
– Current technical setup for GBP/USD
– Key support and resistance levels
– Underlying fundamental drivers affecting the currency pair
– Potential scenarios and trading strategies
Credit for the technical overview and primary analysis goes to **Economies.com**. Here, we further elaborate on their findings and extend the discussion to offer comprehensive insights for traders and investors.
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## Technical Analysis
### Overall Trend
The broader trend for GBP/USD over the previous months has been firmly bearish. Persistent selling pressure has driven the pair to fresh lows, with price action consistently making lower lows and lower highs. This movement is underpinned by:
– Weakness in UK macroeconomic data
– Relative resilience of the US Dollar, driven by policy divergence and safer-haven flows
– Continued political and economic uncertainties in the UK, including questions related to fiscal stability and the post-Brexit environment
However, the most recent trading sessions have witnessed a temporary cessation of this bearish momentum, raising the prospect of a short-term corrective bounce.
### Current Price Action
According to the analysis by Economies.com:
– GBP/USD has shown attempts to rebound from established support levels.
– The pair is exhibiting early signs of bullish correction against the dominant downtrend.
– Key technical indicators, including the Relative Strength Index (RSI) and MACD, suggest a potential easing of bearish pressure, though they have yet to issue a clear reversal signal.
#### Key Technical Points:
– The pair has approached a major support zone near the 1.2000 psychological level.
– Throughout the past week, several attempts to breach this support decisively have failed, leading to short-term consolidation and mild upward movement.
– The latest daily candlestick formations imply indecisiveness among market participants, often a precursor to corrective rallies within a prevailing trend.
### Support and Resistance Levels
Understanding the pivotal levels is essential for mapping out trading decisions:
#### Immediate Support Levels:
– 1.2000: A major psychological and technical support area, tested multiple times.
– 1.1950: Secondary support, aligned with previous swing lows observed on the four-hour and daily charts.
– 1.1885: Major historical zone, last seen during flash crashes and high-volatility events.
#### Key Resistance Levels:
– 1.2150: Initial resistance coinciding with a recent lower high and the mid-Bollinger Band on the daily timeframe.
– 1.2270: Stronger resistance, marked by prior congestion and the 50-day moving average.
– 1.2380: A notable area, aligning with a previous breakdown point and monthly pivot.
### Trend Indicators
Technical traders closely watch the confluence of trendlines, moving averages, and oscillators. The current environment reveals:
– The 50-day moving average remains above current price, acting as dynamic resistance.
– Shorter-term moving averages (10 and 21 day) are beginning to flatten out, rather than aggressively pointing lower, suggesting waning momentum in the downtrend.
– Momentum oscillators (MACD and RSI) are converging towards neutral readings after previously being deeply oversold.
These factors cumulatively support the notion of a potential corrective move, though the broader trend remains negative unless key resistance levels are broken with conviction.
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## Fundamental Drivers
While technical signals offer important clues, the fundamental
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