European session, date: 08/08/2024
GBPUSD Technical analysis. The GBPUSD pair continues to trade in a sideways range, as the price moves between two major resistance and support areas. Today, the pair is trading between the resistance at $1.2715 and the support at $1.2680. In this technical analysis, we will take a closer look at the pair’s performance and key technical levels.
GBPUSD Technical analysis: Overview
The GBPUSD pair is moving in a sideways range, reflecting a state of indecision among traders. The pair is currently trading between the resistance area at $1.2715 and the support area at $1.2680. Moreover, the moving averages are weak, indicating the absence of strong momentum pushing the price in any specific direction.
On the other hand, the MACD indicator indicates weak selling power, which may indicate a possible decline in the downside pressure. However, since the movement continues in a sideways range, a break of any of the support or resistance areas could be a signal for further significant moves. For example, if the price manages to break the resistance at $1.2715, we could see a recovery to the upside. Conversely, a break of the support at $1.2680 could strengthen the downside.
In addition to technical analysis, traders should monitor the fundamental economic factors that affect the pair. For example, Bank of England statements or important economic data such as inflation rates could affect the price action.
Fundamental factors:
The movement of the GBPUSD pair is influenced by several economic factors, including economic data and central bank statements. For example, any changes in the Bank of England’s monetary policy could affect the future direction of the pair. In addition, political developments play an important role in determining the price action. Therefore, it is essential to monitor these factors to gain a deeper insight into the market’s expectations.
Trading strategies based on Buy/Sell levels
| GBPUSD | In case of buying | in case of selling |
| Entry point | 1.2715 | 1.2680 |
| Point 1 (TP1) | First resistance: 1.2735 | First support: 1.2655 |
| Target Point 2 (TP2) | Second resistance: 1.2760 | Second support: 1.2630 |
| Stop Loss (SL) | 1.2680 | 1.2715 |
In conclusion, the GBPUSD pair continues to trade within a sideways range, oscillating between the resistance area at $1.2715 and the support area at $1.2680. The weak moving average crossovers, as well as the weak MACD selling strength, suggest that the pair may remain in this sideways range for some time. However, traders should carefully monitor key technical levels, as a break of any of these areas could lead to significant market movements. In addition, keeping up with economic and political news that may affect the pair’s movement is essential to ensure informed investment decisions.
