GBP/USD Technical Analysis. The GBP/USD pair has witnessed a strong rebound from a key support area, following a downward correction that lasted for several days. Interestingly, this rise coincides with a temporary weakness in the US dollar’s performance, largely supported by market expectations regarding the upcoming monetary policy from the US Federal Reserve. Furthermore, this is happening amid growing anticipation of key economic data, which could ultimately determine the pair’s path during the week.
Technical Overview of the GBP/USD Pair
The pair is currently trading at 1.3384 after a clear breach of the technical resistance area of 1.3342, which provides a positive technical signal in the short term. The general trend is now gradually shifting to the upside, particularly after breaking previous highs and as the price stabilizes above the moving averages, which, in turn, have begun to turn higher.
Technical Indicators Analysis:
MACD: Shows a continuous rise with positive momentum and the indicator lines are moving away from each other, supporting the continuation of the uptrend.
Stochastic Oscillator: In the overbought zone, which requires caution against any short-term corrections.
Moving Averages: The price is above the 50- and 100-hour moving averages, enhancing the chances of a technical upside move.
GBP/USD Technical analysis : Expected Scenarios
Bullish Scenario:
If the pair stabilizes above 1.3342, it is expected to target the following levels:
- 1.3359 as an initial resistance level
- 1.3399, an important resistance level and a previous price high
- 1.3430 as an extended target if the upward momentum continues
Bearish Scenario:
If the price fails to maintain 1.3342, we may witness selling pressure pushing the pair back towards:
- 1.3310 as immediate support
- 1.3270 as an intermediate support area and corrective bottom
- A break of 1.3245 would signal further decline.
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | GBPUSD |
| 1.33999 | 1.33706 | Entry point |
| First resistance: 1.34309 | First support: 1.33429 | Target Point 1 (TP1) |
| Second resistance 1.34609 | Second support 1.331129 | Target Point 2 (TP2) |
| 1.33706 | 1.33999 | Stop Loss (SL) |
The GBP/USD pair is showing further strength after breaching key technical pivot levels. Moreover, this upward movement is supported by clear positive momentum. Nonetheless, the overbought nature of technical indicators calls for caution against any short-term corrections. Therefore, traders need to monitor upcoming UK and US data closely, as these releases will ultimately determine whether the pair can maintain its upward momentum or, alternatively, return to a state of volatility.
Economic Data Impacting GBP/USD This Week
- Bank of England Inflation Report
- UK Consumer Price Index (CPI)
- US Unemployment Claims Data
Any update on trade or geopolitical developments that impact the pound
