GBPUSD | Perspective for the new week | Follow-up

Updated

The currency pair is currently consolidating just above the 1.2400 handle, grappling with recent consolidation highs. The Pound Sterling faces challenges in retaining gains made against the US Dollar (USD) last week.

Experiencing a mid-week peak with a 2.25% gain against the USD, the GBP has since moderated to a more sustainable 1.65%. Despite a broader market risk bid amid speculations that the Federal Reserve (Fed) has concluded interest rate hikes, the GBPUSD remains stuck in the midrange due to underwhelming UK data.

As we look ahead to next week, investor focus will shift to the release of the Fed's latest Meeting Minutes on Tuesday.

GBPUSD Technical Analysis:
Will the pound find a reversal set-up in the near future as the price breaks the $1.24000 zone [the week's key level and potential neckline]? The stakes are high, and we're on the edge of our seats!

The spotlight is on high-impact economic events from both the US dockets for clues. Brace yourselves as the anticipation and the actual events may trigger sharp price movements that could present incredible trading opportunities.

In this video, we've analyzed the Daily and 4-hour timeframes, exploring bullish and bearish sentiments to uncover the most promising trades for the week ahead. We've delved into key levels, trendlines, and support/resistance points, unveiling essential insights into the current market structure.

We are keeping a close eye on the potential range between $1.24000 and $1.25000 where a consolidation could happen before the next BIG move. It's a decisive structure where both sellers and buyers will be vying for control, and how the market reacts here will set the course for GBPUSD in the upcoming days.

Stay connected and join the conversation in the comment section to stay updated on the latest developments. Thank you for tuning in, and get ready for more enlightening insights into GBPUSD in our upcoming content. Buckle up for a thrilling journey ahead! Happy trading!

Note

The Pound Sterling is currently in a positive position, hovering around 1.24800, having broken out of the range between 1.24650 and 1.24465. The recent recovery of this asset is supported by the weaker US Dollar and lower US Treasury bond yields. Today, as market participants await BoE's Bailey speech, there is potential for GBP to rise further, but any upward movement is likely to face resistance around last week's high of 1.25050. To maintain the momentum, the price must remain above 1.24400.

At this point, the question is whether the price will retrace and retest the previously identified structure on the chart or continue to reach new highs. The levels identified in the 1-hour timeframe will guide our trading decisions today.

Good Morning

Note

As highlighted in our recent live session, our focus remains on identifying buy setups, and we will maintain this approach as long as price action remains above the ascending trendline. Note that a breakdown/retest of the ascending trendline will negate buying opportunity in the mean time.

Trade active

UPDATE

Buy position active; protect position as we look out for new trading opportunities.

Trade active

The GBPUSD has gained ground for the third consecutive day, buoyed by the speech delivered by the Bank of England (BoE) Governor, Andrew Bailey during the Henry Plumb Memorial Lecture yesterday. During the Asian session, the current price action stands at 1.25260. Meanwhile, the US Dollar continues to lose ground amidst the lower US Treasury yields and subdued inflation figures from last week, further supporting the positive trend.

From a technical perspective, the ascending trendline remains intact and continues to support the bullish momentum, with three buy positions currently running, yielding over 100 pips. It is vital to protect all positions while monitoring price action ahead of today's FOMC Meeting Minutes, which are expected to provide insights into future policy rate movements.

Good Morning

Trade active

Four buy positions with a total of 170 pips profit; protect positions as we look out ofr new trading opportunities. Remember the ascending remains our guiding light.

Trade active

All buy positions have been closed as the price action broke below our guiding ascending trendline for the first time this week, with the GBPUSD attracting sellers around 1.25500 during the Asian session. This downward momentum is supported by renewed demand for the US dollar. However, I still believe that this move could be a retracement and that the Pound Sterling may still find support from the overnight hawkish remarks by BoE’s Bailey.
Those who took advantage of the selling will want to protect their positions as we await the market's reaction to the 1.25100 zone for the next course of action.

Good Morning

Trade active

UPDATE

Just as discussed during our live session today; Buying pressure resumes

Trade active

Sell position triggered as buy position gets taken out at stop-loss
Protect sell position

Trade active

UPDATE

Trade closed manually

Currently, all sell positions have been closed as buying pressure resumes, causing the GBPUSD to retrace recent losses and trade higher around the 1.2500 psychological level during the Asian session.

As mentioned in our live session yesterday, the bearish momentum may be short-term, with the overall outlook remaining bullish, and the 1.24650 level could serve as a platform for renewed bullish momentum. However, it's important to note that the US Dollar may strengthen as investors perceive persistent inflation in the United States based on economic data, potentially putting pressure on the Pound Sterling. Therefore, we need to remain open to selling opportunities. We will discuss the technical perspective in more detail during our upcoming live session today. Stay tuned.
Update coming soon!

Good Morning

Note

Price action broke out of the descending trendline during yesterday's trading session but is now pulling back from a two-month high during the Asian session. The Pound Sterling received a boost from positive PMI data released in the UK on Thursday and benefited from the closure of US markets during Thanksgiving. The UK business activity is showing signs of improvement, with preliminary S&P Global/CIPS Services and Composite PMIs expanding in November after three months of contraction. As we head into today's trading session, the pivotal question looming over today's trading session is whether the recent pullback signifies an attempt to retest the previously breached descending trendline, laying the groundwork for a potential trend continuation. Alternatively, could the resumption of the US market activity incite a substantial sell-off?
These possibilities will be dissected in detail during our upcoming live session. See you soon!

Happy Friday!

Trade active

Buy positions triggered; protect positions as buying pressure appear to resume

Trade active

UPDATE

120 pips in profit from two buy positions; protect all positions

darcsherry

Trade smart. Trade consciously

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GBPUSD | Perspective for the new week | Follow-up

by darcsherry

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