Sterling finished the week largely unmoved against its US counterpart.
Technically, out of the weekly timeframe, GBP/USD recently faded a key resistance level from $1.2767, following the break of trendline resistance taken from the high of $1.4250 earlier in June. It should not surprise to have seen the unit reject the said horizontal resistance given the number of longer-term buy-stops likely filled north of the aforementioned trendline. The question going forward, however, is whether there is sufficient selling pressure to contain breakout buyers, particularly as the currency pair has been entrenched within an uptrend since September 2022. A retest of the breached trendline may be seen this week, and assuming buyers remain in the driving seat, as suggested by the longer-term trend, $1.2767 might eventually be cleared, and the door opened for resistance at $1.3042.
Meanwhile, on the daily chart, we have seen the GBP pullback to within a stone’s throw of support at $1.2584 (and the nearby 50-day simple moving average at $1.2547). Considering Friday’s rebound just north of the noted support level, this emphasises bullish intent and implies that a retest of the weekly trendline may not occur this week. Instead, we might observe price action attempt to overthrow the weekly resistance level mentioned above at $1.2767 to eventually approach daily resistance from $1.3001, closely followed by weekly resistance at $1.3042, also highlighted above.
Lower on the curve, the H1 timeframe reveals price cleared offers around trendline resistance on Friday (drawn from the high of $1.2841) and whipsawed above the $1.27 handle. The trendline resistance-turned-support level could be enough to deliver short-term support to this market in early trading this week and draw in buying, in line with the bigger picture suggesting a nudge higher could be seen. Should support emerge, the $1.2755 region (blue oval) is vulnerable and unlikely to welcome much selling; cleaner resistance (upside target) resides around $1.2785, sheltered under $1.28.
Technically, out of the weekly timeframe, GBP/USD recently faded a key resistance level from $1.2767, following the break of trendline resistance taken from the high of $1.4250 earlier in June. It should not surprise to have seen the unit reject the said horizontal resistance given the number of longer-term buy-stops likely filled north of the aforementioned trendline. The question going forward, however, is whether there is sufficient selling pressure to contain breakout buyers, particularly as the currency pair has been entrenched within an uptrend since September 2022. A retest of the breached trendline may be seen this week, and assuming buyers remain in the driving seat, as suggested by the longer-term trend, $1.2767 might eventually be cleared, and the door opened for resistance at $1.3042.
Meanwhile, on the daily chart, we have seen the GBP pullback to within a stone’s throw of support at $1.2584 (and the nearby 50-day simple moving average at $1.2547). Considering Friday’s rebound just north of the noted support level, this emphasises bullish intent and implies that a retest of the weekly trendline may not occur this week. Instead, we might observe price action attempt to overthrow the weekly resistance level mentioned above at $1.2767 to eventually approach daily resistance from $1.3001, closely followed by weekly resistance at $1.3042, also highlighted above.
Lower on the curve, the H1 timeframe reveals price cleared offers around trendline resistance on Friday (drawn from the high of $1.2841) and whipsawed above the $1.27 handle. The trendline resistance-turned-support level could be enough to deliver short-term support to this market in early trading this week and draw in buying, in line with the bigger picture suggesting a nudge higher could be seen. Should support emerge, the $1.2755 region (blue oval) is vulnerable and unlikely to welcome much selling; cleaner resistance (upside target) resides around $1.2785, sheltered under $1.28.