The British Pound (GBPUSD) has made a strong upward move, breaking through important resistance levels, indicating a clear shift in the overall trend after a period of volatility. Continuation of this upward move depends on the price’s ability to consolidate above the breached levels.
GBPUSD Technical Analysis: Technical Indicator Analysis
Moving Averages
The price is moving above all major moving averages, supporting the continuation of the upward momentum.
Short-term moving averages are showing a positive crossover, indicating a continued upward trend.
MACD
The indicator is in the positive zone, with bullish bars continuing, confirming the buying power.
Stochastic
The indicator is in the overbought zone at 86, indicating a potential correction is imminent.
GBPUSD Technical Analysis: Possible Scenarios
Bullish Scenario
- If the price succeeds in breaking 1.3199, we may witness an extension of the upward move towards 1.3220 – 1.3250.
- Stabilizing the price above 1.3130 will support the continuation of the upward trend.
Bearish Scenario
- In the event of a correction, any decline towards 1.3130 could be a buying opportunity.
- A break of 1.3130 could push the price towards 1.3080, which could lead to a weakening of the uptrend.
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | GBPUSD |
| 1.31762 | 1.31555 | Entry point |
| First resistance: 1.31997 | First support: 1.31302 | Target Point 1 (TP1) |
| Second resistance: 1.32297 | Second support: 1.31052 | Target Point 2 (TP2) |
| 1.31555 | 1.31762 | Stop Loss (SL) |
The overall trend for GBPUSD remains clearly bullish after strong breaks of key resistance levels, reflecting increased buying momentum. However, prices reaching overbought areas on some technical indicators may trigger short-term corrections before resuming the uptrend.
GBPUSD: Holding above 1.3130 supports an extension of the rally towards 1.3199–1.3220, while a break above this support could push the price towards 1.3080 before any further rebound.
The optimal strategy: Wait for corrections to exploit buying opportunities at key support levels, while monitoring any signs of weakening momentum that may indicate the beginning of deeper corrections.
