GBPUSD Technical Analysis: The British pound is currently benefiting from the continued recovery of the British economy, especially after the release of positive industrial and services production data this week.
Conversely, the limited decline in US momentum continues with the release of US retail sales data later today, increasing caution.
This balance has created volatility in the market, but it remains positive in favor of the pound unless US surprises emerge that support the dollar.
Technical Indicator Analysis
Moving Averages
Price is above all moving averages.
Technical arrangement supports the continuation of the uptrend.
MACD
A clear positive crossover.
Momentum has gradually returned to the upside.
Stochastic
Heading towards the overbought zone (above 75).
Indicates the possibility of a continued uptrend in the near term..
GBPUSD Technical Analysis: Possible Scenarios
Bullish Scenario
A break of 1.3286 opens the door to 1.3320 and then 1.3350.
Provided that it holds above 1.3226.
Bearish Scenario
if the breakout fails, the pair may return to test 1.3226.
A break of 1.3195 will change the trend to neutral for a short period.
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | GBPUSD |
| 1.32860 | 1.32263 | Entry point |
| First resistance: 1.33201 | First support: 1.31950 | Target Point 1 (TP1) |
| Second resistance 1.33422 | Second support 1.31702 | Target Point 2 (TP2) |
| 1.32263 | 1.32860 | Stop Loss (SL) |
The GBP/USD pair is gradually regaining momentum with a break above the major moving averages and positive signals appearing on the MACD and Stochastic.
Price behavior indicates an intention to test the upper resistance levels soon.
Buying is recommended on a break above 1.3286 or on a technical bounce at 1.3226 with a stop loss below 1.3195.
