The pound outperformed against its G10 peers last week, with GBP/USD gaining 1.0% and closing in on prominent resistance. As evidenced from the weekly timeframe, the aforementioned currency pair is nearing trendline resistance taken from the high of $1.4250, sheltered just south of resistance at $1.2767. These remain two key levels as we enter the first full week of May.
Meanwhile, on the daily timeframe, price action is absent of resistance until $1.2638, which shares chart space closely with the weekly resistance mentioned above at $1.2767 (and a long-term 61.8% daily Fibonacci retracement ratio).
It should be clear that both weekly and daily timeframes are trending northbound, visible through the basic price action: higher highs/lows. Therefore, according to the bigger picture’s trend and price structure, buyers have room to manoeuvre until touching gloves with resistance between $1.2767 and $1.2638.
Shorter-term flow shows H1 price jumped on Friday, leaping beyond several key technical resistances to $1.2584 and unmasking the $1.26 handle, together with two Fibonacci projection ratios: 1.618% ($1.2613) and 1.272% ($1.2601). Should a short-term correction materialise, resistance-turned-support warrants attention between $1.2538 and $1.2549. So, with the higher timeframes indicating that buyers could still be at the wheel and H1 action exhibits scope to test $1.26, dip-buyers may be drawn to the noted H1 support should the area make its way into the picture in early trading this week, targeting $1.26, followed by daily resistance from $1.2638.
Meanwhile, on the daily timeframe, price action is absent of resistance until $1.2638, which shares chart space closely with the weekly resistance mentioned above at $1.2767 (and a long-term 61.8% daily Fibonacci retracement ratio).
It should be clear that both weekly and daily timeframes are trending northbound, visible through the basic price action: higher highs/lows. Therefore, according to the bigger picture’s trend and price structure, buyers have room to manoeuvre until touching gloves with resistance between $1.2767 and $1.2638.
Shorter-term flow shows H1 price jumped on Friday, leaping beyond several key technical resistances to $1.2584 and unmasking the $1.26 handle, together with two Fibonacci projection ratios: 1.618% ($1.2613) and 1.272% ($1.2601). Should a short-term correction materialise, resistance-turned-support warrants attention between $1.2538 and $1.2549. So, with the higher timeframes indicating that buyers could still be at the wheel and H1 action exhibits scope to test $1.26, dip-buyers may be drawn to the noted H1 support should the area make its way into the picture in early trading this week, targeting $1.26, followed by daily resistance from $1.2638.