GBP/USD Stability Amid Economic Uncertainty
GBP/USD is testing the waters within a rising channel, showing some vulnerability. Despite this, the higher than expected UK CPI last week has lent some strength to the pair.
Technical analysis: The pair has descended from the upper channel line and is now approaching the lower boundary, currently finding interim support near the 1.2710 level. The upcoming GBP PMIs and the U.S. rate decision are likely to induce significant volatility. For the bullish trend to resume, GBP/USD needs to maintain above this channel support and pivot back towards the 1.2780 resistance level.
After the price broke through its supporting trendline, it slid down to the 1.261 support. As it bounced from that support, we entered some buy positions around 1.263. The price then pushed to the upside and broke the 1.27 support-turnt-resistance, we took some profits there, but still holding most of it as it keeps creating higher lows and highs.
Our position: We hold a cautiously optimistic long-term view, looking for buying opportunities if the pair confirms support within the channel. However, we remain vigilant in the short term, recognizing the potential for downward pressure in light of the pivotal economic events ahead. Tomorrow's UK PMIs and the U.S. rate decision will be instrumental in setting the direction for the pair.
Technical analysis: The pair has descended from the upper channel line and is now approaching the lower boundary, currently finding interim support near the 1.2710 level. The upcoming GBP PMIs and the U.S. rate decision are likely to induce significant volatility. For the bullish trend to resume, GBP/USD needs to maintain above this channel support and pivot back towards the 1.2780 resistance level.
After the price broke through its supporting trendline, it slid down to the 1.261 support. As it bounced from that support, we entered some buy positions around 1.263. The price then pushed to the upside and broke the 1.27 support-turnt-resistance, we took some profits there, but still holding most of it as it keeps creating higher lows and highs.
Our position: We hold a cautiously optimistic long-term view, looking for buying opportunities if the pair confirms support within the channel. However, we remain vigilant in the short term, recognizing the potential for downward pressure in light of the pivotal economic events ahead. Tomorrow's UK PMIs and the U.S. rate decision will be instrumental in setting the direction for the pair.
Comment:
As the price momved below the trnedline, we closed our positions in profit, not risking it further. Currently waiting fo the price to make its move and then reasses our stance to enter new positions.