GBP/USD Technical Analysis. The GBP/USD pair has witnessed a strong upward trend in recent sessions, supported by a weaker dollar and a rebound from important support areas. However, the current movement is showing some hesitation near critical resistance levels, which calls for a careful assessment of technical scenarios.
Technical Overview of the GBP/USD Pair
The pair is currently trading at 1.3344 after successfully breaching the 1.3320 resistance level, which has now become intraday support. Current movements indicate that the pair is seeking to test the 1.3351 resistance level, a pivotal area in the short term.
The price is moving above the moving averages on the H1 timeframe, supporting the uptrend structure, but any failure to breach 1.3362 could lead to bearish corrections.
Technical Indicators Analysis:
MACD: Continues to record positive readings, but momentum is slowing, indicating the possibility of nearby resistance.
Stochastic Oscillator: In overbought areas, reflecting the possibility of a temporary corrective movement.
Moving Averages: The price is above the 50-, 100-, and 200-day moving averages, supporting an uptrend unless a break below 1.3300 occurs..
GBP/USD Technical Analysis : Expected Scenarios
Bullish Scenario:
If the price manages to hold above 1.3320 and break 1.3362, we may witness an upward wave towards 1.3381 as a first target, followed by 1.3400 in the near term.
However, this scenario is contingent upon a break of the 1.3221 resistance with a clear close.
Bearish Scenario:
If the pair fails to break 1.3362 and declines below 1.3320, it may return to test the 1.3300 levels. If broken, the next target will be 1.3280, a significant support level.
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | GBPUSD |
| 1.33519 | 1.33362 | Entry point |
| First resistance: 1.33816 | First support: 1.33030 | Target Point 1 (TP1) |
| Second resistance 1.34110 | Second support 1.32730 | Target Point 2 (TP2) |
| 1.33362 | 1.33519 | Stop Loss (SL) |
The uptrend in GBP/USD remains intact provided it holds above 1.3320. With the price remaining above the moving averages, the potential for a rise towards 1.3380 remains. However, a decline below 1.3300 could lead to a short-term reversal. Traders are advised to monitor UK and US news to confirm the current technical trend.
- Bank of England Governor Bailey’s speech – May 14
- UK GDP – May 15
- US Producer Price Index (PPI) – May 14
These data will move the pair strongly, especially if they surprise against expectations.
