GBP/USD: Bearish Pressure Persists Below 1.3347 Pivot

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of GBP/USD for October 29, 2026.

Technical Analysis of GBP/USD

GBP/USD Daily Chart Insight

(GBP/USD Daily Chart, Source: Ultima Markets MT5)

GBP/USD remains under broader bearish pressure following its decline from the August highs near 1.3650. Although the pair staged a recovery from the October lows around 1.3180–1.3210, buying momentum weakened after encountering resistance near 1.3390–1.3410. The price is currently trading around 1.3321, holding above the rising red 16-period moving average (MA16), but remaining below the declining purple 50-period moving average (MA50) and the relatively flat blue 100-period moving average (MA100).

The convergence of MA50 and MA100 near 1.3390 reinforces overhead resistance, while the daily RSI at 49.77 reflects neutral momentum. The broader outlook remains bearish to neutral, with sellers retaining an advantage below the longer-period moving averages. A sustained recovery above 1.3390–1.3410 would be required to strengthen the bullish outlook, while renewed weakness below MA16 could expose the recent support zone.

Key Levels:

• Support 1 (1.3290–1.3300): Immediate support near the rising MA16 and the latest daily pullback area, where buyers may attempt to stabilise the price.
• Support 2 (1.3210–1.3230): A previous consolidation zone formed during the September–October decline, providing the next potential downside support.
• Support 3 (1.3150–1.3185): A major support region surrounding the October swing lows, where previous selling pressure encountered buying interest.
• Resistance 1 (1.3390–1.3410): Immediate resistance around the converging MA50 and MA100, alongside the recent recovery high.
• Resistance 2 (1.3465–1.3500): A previous trading and consolidation area that may attract renewed selling interest if the recovery extends.
• Resistance 3 (1.3640–1.3675): A major resistance region near the August swing highs, representing a broader upside barrier.

GBP/USD 2-Hour Chart Analysis

(GBP/USD 2-Hour Chart, Source: Ultima Markets MT5)

GBP/USD is showing signs of a short-term recovery after declining from the October 22 highs near 1.3410 toward the recent lows around 1.3275. The latest rebound has lifted the price above the red 16-period moving average (MA16), which is beginning to flatten near 1.3303. However, the pair remains below the declining purple 50-period moving average (MA50) around 1.3340 and the relatively flat blue 100-period moving average (MA100) near 1.3350, indicating that the recovery has yet to reverse the prevailing bearish structure.

RSI has recovered to 52.21, suggesting improving buying momentum without establishing a strong bullish advantage. Price action near 1.3320–1.3335 suggests that the rebound may be entering a temporary consolidation phase. The immediate outlook remains neutral to bearish until buyers can reclaim the overhead moving averages, while failure to defend MA16 could renew downside pressure.

Breakout Scenarios:

• Bullish continuation is a possible scenario, triggered by a decisive break and hold above the 1.3340–1.3355 resistance zone, where MA50 and MA100 are positioned. A successful breakout could open the way toward 1.3385–1.3410, the previous consolidation and swing-high region.
• Bearish correction is a possible scenario if GBP/USD fails to sustain its recovery and breaks decisively below 1.3303, near MA16. Such a move could expose the recent swing-low support around 1.3275–1.3280, with further weakness reinforcing the existing bearish structure.

GBP/USD Pivot Indicator

(GBP/USD 30-Minute Chart, Source: Trading Central)

The GBP/USD 30-minute chart shows the pair trading around 1.3321, below the key pivot resistance at 1.3347, maintaining an immediate bearish bias despite the latest rebound. The RSI stands at 58.79, reflecting moderately positive short-term momentum, while the MACD remains above its signal line but is beginning to flatten near the zero level.

This suggests that the recent recovery is losing some momentum, although a renewed bearish move has yet to receive clear confirmation from the indicators. As long as GBP/USD remains below 1.3347, the downside targets at 1.3277 and 1.3260 remain relevant. Conversely, a sustained breakout above the pivot would weaken the immediate bearish outlook.

Breakout Scenarios:

• Bearish Breakdown: If GBP/USD remains below the 1.3347 pivot and renewed selling pressure develops, the first downside target is 1.3277, followed by 1.3260. A reversal lower in the RSI from its current 58.79 reading, accompanied by a bearish MACD crossover, would strengthen confirmation of the downside move.
• Bullish Reversal: A decisive breakout and sustained hold above 1.3347 would invalidate the immediate bearish preference, opening the way toward 1.3376 as the first upside target, followed by 1.3393. Continued improvement in the RSI above its current reading, together with renewed upward momentum in the MACD above its signal line, would provide additional bullish confirmation.

Disclaimer Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.