The GBP/USD has showcased significant bullish momentum, trading inside of a bullish channel and reaching 1.27 resistance. The pair is now testing the key level around 1.262 as a retracement from the resistance, indicating potential for continued upward movement.
Technical analysis: Although the price broke out and closed below the ascending channel, it is still fundamentally bullish. GU made a correction and retracing down to the 0,5 Fibonacci level which sits right about the 1.262 level. Maintaining above this level could confirm the bullish trend. On the other side, if we see a close below the 0,618 Fibonacci level, it is expected for the price to move lower. Technically, the pair still doesn’t look overly bullish as its still moving below the daily bearish trendline, for the price to confirm a reversal a clean break of the 1.27 level is needed.
Our position: Despite the recent bearish data on the dollar, the Pound hasn’t really made a big push like gold for example. Still, GBP’s sentiment is bullish but a confirmation of direction is needed. We are focusing on long positions, especially with the key level holding. Yet, vigilance is key as the market absorbs the unemployment figures.
Technical analysis: Although the price broke out and closed below the ascending channel, it is still fundamentally bullish. GU made a correction and retracing down to the 0,5 Fibonacci level which sits right about the 1.262 level. Maintaining above this level could confirm the bullish trend. On the other side, if we see a close below the 0,618 Fibonacci level, it is expected for the price to move lower. Technically, the pair still doesn’t look overly bullish as its still moving below the daily bearish trendline, for the price to confirm a reversal a clean break of the 1.27 level is needed.
Our position: Despite the recent bearish data on the dollar, the Pound hasn’t really made a big push like gold for example. Still, GBP’s sentiment is bullish but a confirmation of direction is needed. We are focusing on long positions, especially with the key level holding. Yet, vigilance is key as the market absorbs the unemployment figures.