The GBP/USD pair is showing clear buying momentum after a deep correction last week. The price successfully broke through and stabilized above important resistance levels, which could pave the way for further gains in the coming sessions. In this technical analysis, we review the current movement on the chart and delve deeper into technical indicators to identify potential trading opportunities.
Intraday GBP/USD Overview
- Current price: 1.30718
- Record high: 1.31333
- General trend: Bullish
The pair rebounded from strong support levels near 1.2800, gradually climbing towards 1.3130, benefiting from the decline in the US dollar index and increased appetite for higher-yielding assets.
Technical analysis of the British pound against the dollar GBP/USD
Trend:
- The general trend on the hourly timeframe is bullish, with a clear breakout of the short- and medium-term moving averages (20 and 50).
- The price is moving steadily above these averages, reinforcing the strength of the current trend.
Technical Indicators:
- MACD: Shows continued positive signals with expanding green bars.
- Stochastic Oscillator: Currently trading at 72, indicating that the market is in an overbought zone, but no strong reversal signals have yet emerged.
Price Action:
- The 1.3010 resistance level has been broken and turned into support, indicating that the pair is poised to continue its upward climb toward new highs.
Technical Forecast for GBP/USD | Trading Scenarios
Positive Scenario:
The price remaining above 1.31082 enhances the chances of an upward move toward 1.31498 and then 1.31602 in the coming hours, especially if pressure on the US dollar continues.
Negative Scenario:
If the price fails to maintain the 1.31082 level and falls below it, we may witness a correction toward 1.30137 and then 1.29838.
Trading strategies based on Buy/Sell levels
| GBPUSD | In case of buying | in case of selling |
| Entry point | 1.31082 | 1.30137 |
| Target Point 1 (TP1) | First resistance: 1.31498 | First support: 1.29838 |
| Target Point 2 (TP2) | Second resistance: 1.31602 | Second support : 1.29722 |
| Stop Loss (SL) | 1.30137 | 1.31082 |
The pair is clearly showing an upward trend on the intraday chart, and the 1.3070 area is ideal support for new buying positions, with targets near 1.31498 and 1.31602. However, it is advisable to carefully monitor indicators in case of excessive overbought conditions.
