GBP/USD Technical Analysis: Weekly chart indicates buyer exhaustion
- Long upper wicks attached to GBP/USD weekly candles are signaling bullish exhaustion.
- The daily chart is showing a lower highs setup.
GBP/USD is operating on slippery grounds and could drop below the psychological support of 1.30.
The back-to-back weekly candles with long upper shadows are signaling buyer exhaustion above 1.32. Also, these weekly candles indicate a failure on the part of the bulls to secure a close above the resistance of the trendline sloping downwards from 2014 and 2018 highs.
Further, the 5-week average has topped out and is trending south and the pair has established a lower high at 1.3284 on the daily chart.
So, the path of least resistance appears to be on the downside. A close above 1.3250 (lower high) is needed to confirm a bullish reversal. At press time, the pair is trading at 1.3035, representing moderate losses on the day.