GBPUSD Technical Analysis: The GBP/USD pair experienced an upward rebound after touching a strong support area at 1.2759. The price successfully surpassed several minor resistance levels, showing positive signs in the short-term, amid improved technical momentum.
Technical Indicator Analysis
Moving Averages
The price has returned to move above the short-term moving averages, reflecting improved buying power in the near term.
The crossover of the moving averages could support the continuation of the upward movement if it holds above the current levels.
MACD
The indicator is showing positive signs with the positive bars continuing and expanding, indicating increased buying momentum.
Stochastic
The indicator is moving in overbought areas near 76, which calls for caution regarding the possibility of a downward correction in the short-term, with the positive trend remaining intact unless the pivotal support is broken
GBPUSD Technical Analysis: Possible Scenarios
Bullish Scenario
If the pair holds above 1.2801, it may head towards 1.2823 and then 1.2843.
Positive technical momentum supports this scenario, especially with the short-term moving averages breaking higher.
Bearish Scenario
A break above 1.2780 could re-instate selling pressure and push the pair towards 1.2759, and possibly lower if selling pressure persists.
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | GBPUSD |
| 1.28223 | 1.27802 | Entry point |
| First resistance: 1.28433 | First support: 1.27591 | Target Point 1 (TP1) |
| Second resistance 1.28633 | Second support: 1.27382 | Target Point 2 (TP2) |
| 1.27802 | 1.28223 | Stop Loss (SL) |
The overall trend for the GBP/USD pair shows an improvement in performance after a series of declines, and the price is now testing important resistance areas.
GBP/USD: Consistency above 1.2801 supports a continued rise towards 1.2843, while a break of 1.2780 may re-instate selling pressure.
Optimal Strategy: Monitor price action around 1.2801 and 1.2780 to identify entry opportunities, while adhering to strict risk management.
