A rebound off former resistance is now testing the highs with the weekly / monthly opening-range taking shape just below. GBP/USD is attempting to breach the yearly 75% parallel in early US trade on Thursday. The immediate focus is on today’s close with respect to this threshold.
Initial support rests with the weekly open / 2024 high at 1.3434. Note that the median-line converges on this threshold over the next few days and a break / close below would threaten a larger correction within the broader uptrend towards the 61.8% retracement of the May advance at 1.3313 and bullish invalidation at the May low-day close (LDC) near 1.3176.
A topside breach above the 75% parallel would threaten resumption towards subsequent resistance objectives at the 2022 high-day close (HDC) at 1.3705 and the 100% extension of the January advance at 1.3816- look for a larger reaction there IF reached.
Bottom line: The British Pound is testing confluent resistance at the yearly high and the focus is on a possible price inflection off this pivot zone- watch today’s close. From a trading standpoint, losses should be limited to 1.3434 IF price is heading higher on this stretch with a close above the 1.36 needed to mark uptrend resumption.
Keep in mind we are in the early throws of the June opening-range with U.S. Non-Farm Payrolls slated for tomorrow morning and key inflation data (CPI) on tap next week. Stay nimble into the releases and watch the weekly closes here for guidance.
-MB
Initial support rests with the weekly open / 2024 high at 1.3434. Note that the median-line converges on this threshold over the next few days and a break / close below would threaten a larger correction within the broader uptrend towards the 61.8% retracement of the May advance at 1.3313 and bullish invalidation at the May low-day close (LDC) near 1.3176.
A topside breach above the 75% parallel would threaten resumption towards subsequent resistance objectives at the 2022 high-day close (HDC) at 1.3705 and the 100% extension of the January advance at 1.3816- look for a larger reaction there IF reached.
Bottom line: The British Pound is testing confluent resistance at the yearly high and the focus is on a possible price inflection off this pivot zone- watch today’s close. From a trading standpoint, losses should be limited to 1.3434 IF price is heading higher on this stretch with a close above the 1.36 needed to mark uptrend resumption.
Keep in mind we are in the early throws of the June opening-range with U.S. Non-Farm Payrolls slated for tomorrow morning and key inflation data (CPI) on tap next week. Stay nimble into the releases and watch the weekly closes here for guidance.
-MB
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.