The Sterling rally failed to close above confluent trend resistance at the 2022 high near 1.3749 with GBP/USD now off more than 1.8% from the monthly / yearly high. The July opening-range seems set here at 1.3530-1.3750 and the focus is on a breakout in the days ahead with the broader outlook still constructive while within this formation.
GBP/USD is testing support today at the 61.8% retracement of the late-June advance at 1.3530 with the weekly opening-range preserved just above. Initial resistance eyed along this short-term channel with breach above the objective weekly open at 1.3645 needed to shift the focus back towards the 2022 high at 1.3749- a daily close above this level is still needed to mark uptrend resumption. Subsequent resistance objective eyed at the 100% extension of the January advance at 1.3816 and the 61.8% extension of the broader 2022 advance at 1.4003.
A break lower exposes key support at the 61.8% retracement of the May rally / 2024 high-day close (HDC) at 1.3388-1.3415. A break / close below this slope would suggest a more significant high was registered last week / a larger reversal is underway with initial support seen at the May low-day close (LDC) at 1.3176.
Bottom line: A reversal from trend resistance threatens a larger correction within the broader GBP/USD uptrend. The immediate focus is on a breakout of the weekly opening-range for guidance. From a trading standpoint, losses would need to be limited to 1.3388 IF Sterling is heading higher on this stretch with a close above 1.3749 ultimately needed to mark uptrend resumption.
-MB
GBP/USD is testing support today at the 61.8% retracement of the late-June advance at 1.3530 with the weekly opening-range preserved just above. Initial resistance eyed along this short-term channel with breach above the objective weekly open at 1.3645 needed to shift the focus back towards the 2022 high at 1.3749- a daily close above this level is still needed to mark uptrend resumption. Subsequent resistance objective eyed at the 100% extension of the January advance at 1.3816 and the 61.8% extension of the broader 2022 advance at 1.4003.
A break lower exposes key support at the 61.8% retracement of the May rally / 2024 high-day close (HDC) at 1.3388-1.3415. A break / close below this slope would suggest a more significant high was registered last week / a larger reversal is underway with initial support seen at the May low-day close (LDC) at 1.3176.
Bottom line: A reversal from trend resistance threatens a larger correction within the broader GBP/USD uptrend. The immediate focus is on a breakout of the weekly opening-range for guidance. From a trading standpoint, losses would need to be limited to 1.3388 IF Sterling is heading higher on this stretch with a close above 1.3749 ultimately needed to mark uptrend resumption.
-MB
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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.