empty
28.01.2025 01:29 PM
Forecast for GBP/USD on January 28, 2025

On the hourly chart, the GBP/USD pair on Monday made another attempt to consolidate above the resistance zone of 1.2488–1.2508, which again failed. Bullish traders seem to be running out of steam after three weeks of attacks, often without solid justification. Therefore, I anticipate that this week the pair will continue its decline toward the support zone of 1.2363–1.2370 and the level of 1.2303.

This image is no longer relevant

The wave structure remains clear. The last completed downward wave broke the low of the previous wave, while the last upward wave has yet to reach the previous peak. This indicates an ongoing bearish trend with no doubts about its continuation. For this trend to reverse, the pound needs to rise to at least 1.2569 and close confidently above this level. While this is possible, discrepancies between the wave structures of the euro and the pound suggest that one of these structures will prove incorrect.On Monday, there was little news from the UK or the US. However, tomorrow will reveal the outcome of the FOMC meeting, and next week, we'll have the results of the Bank of England meeting, along with the release of the Q4 GDP report for the US on Thursday. If bearish traders aim to seize control, these events could provide the informational backdrop they need. In my opinion, further bullish attempts are doubtful. The market has already priced in all the negative factors for the dollar linked to Trump. From now on, economic factors—Fed and Bank of England monetary policies and the overall state of the US and UK economies—will take precedence. These factors are not favorable for the pound. While there are no significant UK news events this week, Trump's influence on the dollar may continue for a while. However, economic factors tend to outweigh political and geopolitical ones. On higher timeframes, the trend remains bearish. Bulls will need to exert significant effort to reverse it.

This image is no longer relevant

On the 4-hour chart, the pair continues to rise within a downward trend channel. A rebound from the upper boundary of this channel could lead to a reversal in favor of the US dollar and a decline toward the Fibonacci 100.0% level at 1.2299. Consolidation above the channel could finally drive bears out of the market. However, bulls will require consistent positive news from the UK or negative news from the US, which is currently difficult to expect. No emerging divergences are observed in any indicators today.

Commitments of Traders (COT) Report

This image is no longer relevant

The sentiment of the "Non-commercial" category of traders became significantly more bearish during the last reporting week. The number of long positions held by speculators decreased by 4,861, while short positions increased by 3,834. Bulls have lost all advantage in the market, with this process unfolding over several months. The gap between the number of long and short positions is now in favor of the bears: 75,000 vs. 84,000.

In my view, the pound still has room to fall, as COT reports show the growing strength of bearish positions nearly every week. Over the past three months, long positions have dropped from 161,000 to 75,000, while short positions have risen from 67,000 to 84,000. I believe professional traders will continue to reduce long positions or increase short ones, as all potential bullish factors for the pound have already been priced in. Current chart analysis indicates growth, but corrections are also necessary.

News Calendar for the US and UK:

  • US: Durable Goods Orders (13:30 UTC).

Tuesday's economic calendar contains only one event, which bears are relying on. The overall impact of the news on trader sentiment for the rest of the day is expected to be weak.

GBP/USD Forecast and Recommendations:

  • Sell opportunities: Sales will be possible if the pair consolidates below the upward trend channel on the hourly chart. Selling was also viable on a rebound from the 1.2488–1.2508 zone, with targets at 1.2363–1.2370.
  • Buy opportunities: Consider buying the pound today on a rebound from the 1.2363–1.2370 zone on the hourly chart, targeting 1.2488–1.2508.

Fibonacci Levels:

  • Built on 1.3000–1.3432 on the hourly chart.
  • Built on 1.2299–1.3432 on the 4-hour chart.
Samir Klishi,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Technical Analysis for March 2025 on the GBP/USD Currency Pair

In March, starting from 1.2576 (February's closing price), the price may continue moving upward toward 1.2767 – the 50% retracement level (blue dashed line). If this level is tested, further

Stefan Doll 12:11 2025-03-03 UTC+2

Technical Analysis for March 2025 on the EUR/USD Currency Pair

In March, starting from 1.0376 (the closing price of the February monthly candle), the price is likely to continue moving upward toward 1.0573 – the 38.2% retracement level (blue dashed

Stefan Doll 12:08 2025-03-03 UTC+2

EUR/USD. March 3rd. The Super Week Kicks Off with a Storm of News

On Friday, EUR/USD declined to the 50.0% Fibonacci retracement level at 1.0371, rebounded from it, and reversed in favor of the euro, consolidating above the 38.2% Fibonacci level at 1.0408

Samir Klishi 11:40 2025-03-03 UTC+2

GBP/USD. March 3rd. Bears May Extend Their Success This Week

On the hourly chart, GBP/USD rebounded from the resistance zone of 1.2611–1.2620 on Friday, leading to a slight decline. On Monday, the pair returned to this zone and may retest

Samir Klishi 11:35 2025-03-03 UTC+2

Forex forecast 03/03/2025: EUR/USD, GBP/USD, USD/JPY, Gold and Bitcoin

Useful links: My other articles are available in this section InstaForex course for beginners Popular Analytics Open trading account Important: The begginers in forex trading need to be very careful

Sebastian Seliga 11:19 2025-03-03 UTC+2

Technical Analysis of Intraday Price Movement of USD/JPY Main Currency Pairs, Monday March 03, 2025.

If we pay close attention to the 4-hour chart of the main currency pair USD/JPY, it appears that there is a deviation between the price movement of USD/JPY

Arief Makmur 07:07 2025-03-03 UTC+2

Technical Analysis of Daily Price Movement of USD/IDR Exotic Currency Pairs, Monday March 03, 2025.

In the next few days, the exotic currency pair USD/IDR has the opportunity to correct and weaken down to below the area level of 16439.92-16372.18 based on the appearance

Arief Makmur 07:07 2025-03-03 UTC+2

EUR/USD Forecast for March 3, 2025

On Friday, the euro fell by 20 pips, but it has already surpassed that day's high this morning. However, it is likely to continue fluctuating within the range of 1.0350–1.0458

Laurie Bailey 03:33 2025-03-03 UTC+2

GBP/USD Forecast for March 3, 2025

On Friday, the British pound consolidated below the 1.2616 level. The most likely scenario now is a decline toward the support target at 1.2500. This downward movement is expected

Laurie Bailey 03:33 2025-03-03 UTC+2

Oil Forecast for March 3, 2025

On Friday, oil prices consolidated above the level of 69.74. During the Pacific session today, they surpassed Thursday's peak, and now there are no obstacles preventing the price from reaching

Laurie Bailey 03:33 2025-03-03 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.