Watching GBPUSD closely at the 1.2970 level where we're seeing significant resistance. The high-volume node at 1.293 on the VRVP indicator suggests this is a key battleground.
Key observations:
- EURUSD vs GBPUSD divergence (unusual strength in GBP)
- Early MACD bearish signals on daily
- Price testing major liquidity zone (1.293-1.297)
From a fundamental perspective, BoE hawkishness has supported GBP, but underlying UK economic data doesn't justify continued outperformance.
Looking for rejection at current levels with potential move toward 1.275 support. If that breaks, expect further downside.
Today's tariff announcement could accelerate this bearish scenario. The proposed trade measures between the US and key partners will likely boost USD demand as a safe haven, putting additional pressure on GBP. The UK's trade-dependent economy makes it particularly vulnerable to escalating trade tensions, potentially becoming a catalyst for the breakdown we're technically setting up for. Let's see
Trade closed: target reached
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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.