- GBP/USD once again stalled the intraday positive move near ascending channel resistance.
- The set-up favours bullish traders and supports prospects for the emergence of dip-buying.
- A sustained break below the 1.3200 mark is needed to negate the near-term bullish outlook.
The GBP/USD pair trimmed a part of its intraday gains to the 1.3380 region and once again witnessed a modest pullback from the top end of a two-month-old ascending trend-channel. The pair's inability to break through the channel resistance warrants some caution for bullish traders.
However, the fact that the GBP/USD pair has managed to hold above the 1.3310-1.3300 resistance breakpoint, the near-term bias seems tilted in favour of bullish traders. Hence, a pullback towards the mentioned resistance-turned-support might still be seen as a buying opportunity.
Meanwhile, technical indicators on the daily chart maintained their bullish bias and further support prospects for the emergence of some dip-buying at lower levels. That said, some follow-through weakness below the 1.3300 mark might prompt some technical selling.
The GBP/USD pair might then accelerate the retracement slide towards the 1.3265-60 horizontal support before eventually dropping to test the 1.3200 round-figure mark. Failure to defend the mentioned support levels will negate the near-term constructive outlook.
On the flip side, bulls might now wait for a sustained strength beyond the 1.3400 mark to confirm a trend-channel breakout. The momentum could then push the GBP/USD pair back towards September monthly swing highs, around the 1.3480 region, en-route the key 1.3500 psychological mark.
GBP/USD daily chart
Technical levels to watch
|Today last price||1.3338|
|Today Daily Change||0.0020|
|Today Daily Change %||0.15|
|Today daily open||1.3318|
|Previous Daily High||1.3398|
|Previous Daily Low||1.3264|
|Previous Weekly High||1.3312|
|Previous Weekly Low||1.3166|
|Previous Monthly High||1.3177|
|Previous Monthly Low||1.282|
|Daily Fibonacci 38.2%||1.3347|
|Daily Fibonacci 61.8%||1.3315|
|Daily Pivot Point S1||1.3255|
|Daily Pivot Point S2||1.3193|
|Daily Pivot Point S3||1.3122|
|Daily Pivot Point R1||1.3389|
|Daily Pivot Point R2||1.346|
|Daily Pivot Point R3||1.3522|
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