GBP/USD has been an attractive pair for USD-weakness scenarios and that continued through this morning's Bank of England rate cut, which propelled the pair through resistance in an ascending triangle formation.
The challenge now is working with a move that's become quite stretched since the support test at 1.3145 last week. This isn't to say that it can't continue, especially if we see USD bears continuing to push, but that 1.3500 level sitting overhead is an imposing spot of longer-term support/resistance.
For continuation, there's an area of support potential as taken from prior support-turned-resistance that remains of interest, and that's at 1.3380. Below that, we have the resistance side of the ascending triangle down around 1.3316, and a failure from buyers to hold that will given the appearance of failure and possible reversals. In that event I think there could be more attractive venues for USD-strength. - js
The challenge now is working with a move that's become quite stretched since the support test at 1.3145 last week. This isn't to say that it can't continue, especially if we see USD bears continuing to push, but that 1.3500 level sitting overhead is an imposing spot of longer-term support/resistance.
For continuation, there's an area of support potential as taken from prior support-turned-resistance that remains of interest, and that's at 1.3380. Below that, we have the resistance side of the ascending triangle down around 1.3316, and a failure from buyers to hold that will given the appearance of failure and possible reversals. In that event I think there could be more attractive venues for USD-strength. - js
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.