The GBP/USD pair continues to exhibit a bullish longer-term trend, underpinned by a series of higher highs and higher lows. However, recent price action shows consolidation within a sideways trading range, suggesting a pause or potential accumulation before the next directional move.
The key technical level to monitor is 1.3200, which aligns with a prior consolidation zone and serves as a critical support area. A corrective pullback towards this level could present a buying opportunity, particularly if price action forms a bullish reversal pattern around this zone. A successful rebound from 1.3200 would likely target resistance levels at 1.3400, followed by 1.3445 and 1.3500 on a longer-term basis.
Conversely, a daily close below 1.3200 would invalidate the current bullish bias and suggest a shift in sentiment. This scenario opens the door for further downside towards the next support at 1.3160, with extended losses potentially reaching 1.3116.
Conclusion:
While the broader trend remains bullish, GBP/USD is currently range-bound. Traders should watch for a reaction around the 1.3200 level. A bounce would reinforce bullish momentum towards 1.3400 and beyond, whereas a confirmed break below this level would signal further weakness and a possible trend shift in the near term.
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.
The key technical level to monitor is 1.3200, which aligns with a prior consolidation zone and serves as a critical support area. A corrective pullback towards this level could present a buying opportunity, particularly if price action forms a bullish reversal pattern around this zone. A successful rebound from 1.3200 would likely target resistance levels at 1.3400, followed by 1.3445 and 1.3500 on a longer-term basis.
Conversely, a daily close below 1.3200 would invalidate the current bullish bias and suggest a shift in sentiment. This scenario opens the door for further downside towards the next support at 1.3160, with extended losses potentially reaching 1.3116.
Conclusion:
While the broader trend remains bullish, GBP/USD is currently range-bound. Traders should watch for a reaction around the 1.3200 level. A bounce would reinforce bullish momentum towards 1.3400 and beyond, whereas a confirmed break below this level would signal further weakness and a possible trend shift in the near term.
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.
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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.