GBPUSD is currently positioned at a crucial make-or-break point, testing the top line of the seven-month-old bearish channel slightly below the 1.3600 psychological level.
A decisive close above that threshold could bring new buyers into the market, with the price likely heading straight up to the 200-day simple moving average (SMA) at 1.3740 in the aftermath, while not far above, an extension beyond the 1.3835 – 1.3900 resistance zone would finally clear the way towards the key 1.4000 mark.
The market has yet to confirm overbought conditions as the rising RSI is still some distance below 70, while the Stochastics have just pivoted to the upside to pierce the 80 level. Therefore, the base scenario is for bullish pressures to dominate in the short term.
Nevertheless, should the bears win the battle, pressing the price below the 23.6% Fibonacci retracement of the 1.1409 - 1.4248 upleg at 1.3578, the red Tenkan-sen line could immediately attempt to halt the fall around 1.3515 as it did last week. If it proves fragile, the decline could stretch towards the 1.3400 region, where the 20- and 50-day simple moving averages (SMAs) happen to be at the moment. Then, a step beneath the 1.3350 – 1.3300 region could encounter support somewhere between 1.3200 and the 2021 low of 1.3160.
Summarizing, the technical picture is favoring additional gains in the GBPUSD market, though only a sustainable move above the channel could add extra fuel to the ongoing bullish run.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.