GBP/USD Bears Favoured This Week
Ahead of this week’s wages/employment data and CPI inflation print, the technical position for the GBP/USD leans in favour of bears.
Monthly Resistance Continues to Attract Selling
Kicking off with a look at the monthly chart, the currency pair continues to test the mettle of resistance at $1.2715, ending marginally lower for a second straight week. The overall longer-term picture reflects a downtrend, and the pullback from historic lows of $1.0539 in September 2022 could still be viewed as a long-term sell-on-rally scenario. Whether we’ll see lows as far south as $1.0539 in the foreseeable is debatable, but the fact remains that we are trending south, and that price is fading monthly resistance. As a result, support may call for attention at $1.2173 over the coming months.
Range Support Vulnerable on the Daily
Out of the daily timeframe, since late 2023 we have been rangebound between $1.2540 and $1.2763, with last week recoiling from the lower boundary of said range. Aside from a 61.8% Fibonacci retracement ratio at $1.2721, limited mid-range resistance is seen until the upper boundary at $1.2763. Technically, a pullback to the resistances might be seen, though ultimately, given where the unit is coming from on the monthly chart, a breakout below the daily consolidation is also firmly on the table.
So, with the monthly suggesting lower prices and the daily echoing a vulnerable range low, short-term traders may enter the week in pursuit of a bearish scenario.
Two H1 Resistances Eyed This Week
On the H1 timeframe, the resistance between $1.2648 and $1.2642 has proven popular in February, withstanding a number of upside attempts. With price recently unable to conquer the $1.26 support, a whipsaw of the resistance area might be seen to test neighbouring resistance at $1.2653 (a move that may attract sellers). Alternatively, should sellers fail to demonstrate much interest here and a breakout higher forms, resistance between $1.2721 and $1.2700 could be an area sellers are drawn to this week (note that the upper edge of the resistance is joined with the daily timeframe’s 61.8% Fibonacci retracement ratio).
Monthly Resistance Continues to Attract Selling
Kicking off with a look at the monthly chart, the currency pair continues to test the mettle of resistance at $1.2715, ending marginally lower for a second straight week. The overall longer-term picture reflects a downtrend, and the pullback from historic lows of $1.0539 in September 2022 could still be viewed as a long-term sell-on-rally scenario. Whether we’ll see lows as far south as $1.0539 in the foreseeable is debatable, but the fact remains that we are trending south, and that price is fading monthly resistance. As a result, support may call for attention at $1.2173 over the coming months.
Range Support Vulnerable on the Daily
Out of the daily timeframe, since late 2023 we have been rangebound between $1.2540 and $1.2763, with last week recoiling from the lower boundary of said range. Aside from a 61.8% Fibonacci retracement ratio at $1.2721, limited mid-range resistance is seen until the upper boundary at $1.2763. Technically, a pullback to the resistances might be seen, though ultimately, given where the unit is coming from on the monthly chart, a breakout below the daily consolidation is also firmly on the table.
So, with the monthly suggesting lower prices and the daily echoing a vulnerable range low, short-term traders may enter the week in pursuit of a bearish scenario.
Two H1 Resistances Eyed This Week
On the H1 timeframe, the resistance between $1.2648 and $1.2642 has proven popular in February, withstanding a number of upside attempts. With price recently unable to conquer the $1.26 support, a whipsaw of the resistance area might be seen to test neighbouring resistance at $1.2653 (a move that may attract sellers). Alternatively, should sellers fail to demonstrate much interest here and a breakout higher forms, resistance between $1.2721 and $1.2700 could be an area sellers are drawn to this week (note that the upper edge of the resistance is joined with the daily timeframe’s 61.8% Fibonacci retracement ratio).
Note
$1.2653 resistance entered the fray and held. Short-term bears are on a run at the moment!
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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.