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RLinda
Jan 12, 2024 9:05 AM

GBPUSD → A technically weak dollar will strengthen the pair  Long

British Pound/U.S. DollarFXCM

Description

FX:GBPUSD continues to form consolidation in the ascending triangle format. Bulls are gaining strength and trying to break through the resistance zone 1.2780 - 1.2800.



The currency pair is in a global uptrend and according to a number of prerequisites this direction may continue.
If we pay attention to the TVC:DXY , we can see that the index does not react to bullish news at all and apparently due to the overheated condition the index is ready to decline. In this case, this maneuver will be favorable for the pound sterling, which can strengthen the pair.
On the chart we see an ascending channel and a pre-failure consolidation in the format of an ascending triangle. The resistance 1.2780 - 1.2800 plays a key role. Breakout of this zone and price consolidation above the level will form a bullish potential, which will confirm the breakout of the level.

Support levels: 1.2715, 1.2615
Resistance levels: 1.2780, 1.2888


I expect a breakout of resistance under the pressure of buyers on the limit resistance zone.

Regards R. Linda!
Comments
maurizioscoppolino
Si concordo, una sessione di Londra ribassista per poi andare lungo in NEW YORK
RLinda
@maurizioscoppolino, yeah, thanks for comment ;)
RLinda
Hi traders! What do u think about GBPUSD?
AbdulMujibOnimisi
@RLinda, Your analysis is excellent.
RLinda
TheRealAshiraf
@RLinda A break above in DXY might trigger a decline in the pound. On the flip side, if it dips below, your assessments seem on point. Let's wait and watch, but my current outlook doesn't suggest a weakening dollar.
internetm
@RLinda, Looking forward to your update for this week.
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