- The GBPUSD is currently trading in a downtrend.
-The price has bounced off the trendline support at 1.24960.
-We expect the price to retrace to the 1.25400 area.
-From there, we could see a test of the 1.25060 support level.
-If the price breaks above 1.25060, we could target the 1.25720 resistance level.
Risk:
The stop loss should be placed below the 1.24960 trendline support level.
Fundamentals:
The current fundamental outlook for GBPUSD is mixed. On the one hand, the UK economy is recovering from the COVID-19 pandemic, and the Bank of England is expected to raise interest rates in the coming months. This could support the value of the pound. On the other hand, the US economy is also recovering, and the Federal Reserve is expected to raise interest rates more aggressively than the Bank of England. This could put downward pressure on the pound.
Overall, the outlook for GBPUSD is uncertain. However, the technical setup is bullish, and the price could break above or get rejected at 1.25720 resistance level in the near term.
-The price has bounced off the trendline support at 1.24960.
-We expect the price to retrace to the 1.25400 area.
-From there, we could see a test of the 1.25060 support level.
-If the price breaks above 1.25060, we could target the 1.25720 resistance level.
Risk:
The stop loss should be placed below the 1.24960 trendline support level.
Fundamentals:
The current fundamental outlook for GBPUSD is mixed. On the one hand, the UK economy is recovering from the COVID-19 pandemic, and the Bank of England is expected to raise interest rates in the coming months. This could support the value of the pound. On the other hand, the US economy is also recovering, and the Federal Reserve is expected to raise interest rates more aggressively than the Bank of England. This could put downward pressure on the pound.
Overall, the outlook for GBPUSD is uncertain. However, the technical setup is bullish, and the price could break above or get rejected at 1.25720 resistance level in the near term.
Trade closed: stop reached