The GBP/USD pair is showing weakness. As USD buyers pushed the dollar higher at the beginning of the new year, GU started falling short.
Technical Insights:
The cable has been following its supporting trendline from 1.261 up to 1.283, where it reached its peak and rejected the resistance. It made a clear break under this trendline and continued down to its support around 1.262. Should it break this level, the focus will shift to the 1.2500 support as a potential target.
Market Positioning:
Despite the strong bearish sentiment, the GBP/USD pair still holds its ground. The dollar's trajectory, on pause from Fed's rate decisions, presents a selling opportunity for the pair. Any significant pullback could entice long entries, especially if the price action confirms a move above the current resistance.
Outlook:
Maintaining a cautious stance, we are waiting for a confirmation of direction. The pair's ability to stay afloat above the 1.2610 support, may indicate underlying strength, with the next sessions likely to confirm this trend if the price holds its support.
Technical Insights:
The cable has been following its supporting trendline from 1.261 up to 1.283, where it reached its peak and rejected the resistance. It made a clear break under this trendline and continued down to its support around 1.262. Should it break this level, the focus will shift to the 1.2500 support as a potential target.
Market Positioning:
Despite the strong bearish sentiment, the GBP/USD pair still holds its ground. The dollar's trajectory, on pause from Fed's rate decisions, presents a selling opportunity for the pair. Any significant pullback could entice long entries, especially if the price action confirms a move above the current resistance.
Outlook:
Maintaining a cautious stance, we are waiting for a confirmation of direction. The pair's ability to stay afloat above the 1.2610 support, may indicate underlying strength, with the next sessions likely to confirm this trend if the price holds its support.
Trade active:
As the price moved above the 1.2610 support, we entered some buy positions. Took some profits at 1.27, still holding most positions, moved the stop loss a bit above breakeven.