GBP/USD Technical Rebound: A New Support in Play
Post-Fed reflections find GBP/USD at a technical crossroads, having broken past a descending trendline, now testing it as potential support around the 1.261 zone. The pair's reaction to this level amid the USD's post-decision dip could set the tone for upcoming sessions.
Technical analysis: The cables been creating lower lows and high for some time following its descending trend line, it bounced nicely off of the previous resistance- now support around 1.2500. It then rallied beyond the trendline, broke out and is one the way to retest the 1.2610 area, hinting at bullish undertones. A successful defense of this newly established support may pave the way for a push towards the new resistance at 1.2800. Conversely, a breach below could see a retest of the solid support band near 1.250.
Positioning: With a cautiously optimistic outlook, we're monitoring for long entries, especially if GBP/USD sustains its footing above the critical juncture. The market's response to the Fed's rate pause, alongside current price dynamics, suggests the potential for buying scenarios.
Technical analysis: The cables been creating lower lows and high for some time following its descending trend line, it bounced nicely off of the previous resistance- now support around 1.2500. It then rallied beyond the trendline, broke out and is one the way to retest the 1.2610 area, hinting at bullish undertones. A successful defense of this newly established support may pave the way for a push towards the new resistance at 1.2800. Conversely, a breach below could see a retest of the solid support band near 1.250.
Positioning: With a cautiously optimistic outlook, we're monitoring for long entries, especially if GBP/USD sustains its footing above the critical juncture. The market's response to the Fed's rate pause, alongside current price dynamics, suggests the potential for buying scenarios.