GBPUSD Technical Analysis: The GBP/USD pair is moving in an upward corrective range after a sharp decline that has continued since the beginning of April. Recent movements coincide with markets awaiting a set of important economic data releases from the United States. Meanwhile, UK data released this morning came in below expectations, putting mixed pressure on the pair and creating a potential short-term trading opportunity.
GBPUSD Technical Analysis: Market Overview
Current Trading Price: 21.2868
- General Trend: Bullish Rebound
- Economic Context:
o From the UK: Monthly GDP data was released, which came in lower than expected, putting pressure on the pound this morning.
o From the US: Markets are awaiting CPI inflation data later today, which will have a direct impact on Federal Reserve interest rate expectations and, consequently, the US dollar. Technical Indicators Analysis (H1):
General Trend:
- The pair has begun forming a double bottom near 1.27910, signaling a temporary bullish reversal.
- It has broken the temporary resistance level at 1.28210 and is currently targeting stronger resistance at 1.28950.
Moving Averages:
- The price is now above the shorter moving averages (5 and 13), reflecting bullish momentum in the near term.
- The longer moving averages (50 and 100) remain above the price, indicating that the current rise is corrective so far and not a new trend.
MACD Indicator:
- The MACD has turned positive and bullish bars have begun to appear, supporting the continuation of the rise in the short term.
Stochastic Indicator:
- It is in overbought areas (above 80), indicating a possible slight correction or temporary pullback before the rise continues.
Trading strategies based on Buy/Sell levels
| GBPUSD | In case of buying | in case of selling |
| Entry point | 1.28959 | 1.28219 |
| Target Point 1 (TP1) | First resistance: 1.29352 | First support: 1.27919 |
| Target Point 2 (TP2) | Second resistance: 1.29520 | Second support : 1.27821 |
| Stop Loss (SL) | 1.28219 | 1.28959 |
The GBP/USD pair is currently moving within an upward corrective range that may continue if 1.28959 is breached. However, the continuation of the upward momentum depends on the market’s reaction to today’s US inflation data.
Buoyant scenario: If US data is weaker than expected, we may witness a break of 1.29352 and a stronger upward momentum.
Dangerous scenario: If the data is supportive for the dollar, the pair is expected to return to testing and possibly breaking the 1.28219 and 1.27919 levels.
