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GBP/USD Price Analysis: Weekly marubozu suggests the bears are in control

  • GBP/USD's weekly candlestick pattern is painting a bearish picture. 
  • The bears could challenge support below 1.28 in the near-term. 

The path of least resistance for GBP/USD is to the downside. 

The pair created a big red marubozu candle last week, which comprises a long body and little or no shadows,  a sign the bears remained in control from the start to finish. 

It is reflective of strong bearish sentiment and often precedes notable price sell-offs. 

Last week's marubozu candle also marked a downside break of the support at 1.2904 (December low). 

That alongside the below-50 or bearish reading on the 14-day relative strength index suggests scope for a deeper slide to 1.2769 (November low). 

Currently, the pair is trading at 1.2913, having defended the 50-day average on Monday. The bounce from key average could be short-lived, as the weekly chart is reporting strong bearish conditions. 

The bearish bias will be invalidated only if the pair ends the current week above the previous week's high of 1.3201.

Weekly chart

Trend: Bearish

Technical levels

 

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