The GBP/USD currency pair demonstrates a bullish sentiment, underpinned by the prevailing long-term uptrend. Recent intraday price action has displayed sideways consolidation, gravitating toward the breakout level and previous resistance. This movement potentially forms a bullish flag continuation pattern, suggesting a resumption of the upward trend.
Key Support and Resistance Levels
Support Level 1: 1.2736 (previous consolidation range and 50% Fibonacci retracement zone from the 28th February 2025 low to the 9th March swing high)
Support Level 2: 1.2686
Support Level 3: 1.2600
Resistance Level 1: 1.3000
Resistance Level 2: 1.3050
Resistance Level 3: 1.3180
Bullish Scenario
A corrective pullback from the current levels, followed by a bullish bounce from the 1.2736 support level, would reaffirm the bullish bias. This could set a potential upward trajectory targeting the 1.3000 resistance level, followed by 1.3050 and ultimately 1.3180 over a longer timeframe.
Bearish Scenario
Conversely, a confirmed breakdown below 1.2736 with a daily close beneath this level would invalidate the bullish outlook, indicating the possibility of further retracement. In this case, GBP/USD could test the next support at 1.2686, with an extended decline potentially reaching 1.2600.
Conclusion
The GBP/USD currency pair exhibits a bullish continuation setup, provided that the 1.2736 support level remains intact. A bounce from this level could trigger a move towards higher resistance zones. However, a breakdown below 1.2736 would shift sentiment to bearish, targeting lower support levels. Traders should monitor price action around these key levels for confirmation before executing positions.
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
Key Support and Resistance Levels
Support Level 1: 1.2736 (previous consolidation range and 50% Fibonacci retracement zone from the 28th February 2025 low to the 9th March swing high)
Support Level 2: 1.2686
Support Level 3: 1.2600
Resistance Level 1: 1.3000
Resistance Level 2: 1.3050
Resistance Level 3: 1.3180
Bullish Scenario
A corrective pullback from the current levels, followed by a bullish bounce from the 1.2736 support level, would reaffirm the bullish bias. This could set a potential upward trajectory targeting the 1.3000 resistance level, followed by 1.3050 and ultimately 1.3180 over a longer timeframe.
Bearish Scenario
Conversely, a confirmed breakdown below 1.2736 with a daily close beneath this level would invalidate the bullish outlook, indicating the possibility of further retracement. In this case, GBP/USD could test the next support at 1.2686, with an extended decline potentially reaching 1.2600.
Conclusion
The GBP/USD currency pair exhibits a bullish continuation setup, provided that the 1.2736 support level remains intact. A bounce from this level could trigger a move towards higher resistance zones. However, a breakdown below 1.2736 would shift sentiment to bearish, targeting lower support levels. Traders should monitor price action around these key levels for confirmation before executing positions.
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
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.
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.