In the previous trading session, the GBP/USD pair displayed remarkable resilience, reinforcing the bullish trend observed. The currency pair capitalized on the USD’s weakness following the Federal Reserve's pause in rate hikes due to a softer CPI, fuelling bullish momentum for the Pound.
Technical analysis: A technical breakout above the pivotal 1.264 resistance zone, which it is now going to testing as a support level, has set a constructive tone for further appreciation. This bullish sentiment is fortified by the pair currently trading above the 20-period Simple Moving Average on the 4-hour chart, indicating sustained upward pressure. The next significant hurdle lies at the recent peak around 1.27300, where a breach could signal continued bullish advancement.
Our position: Backed by the underlying fundamental shift in the USD’s trajectory, we are monitoring the GBP/USD for potential long entries. The strategy is to leverage the tactic in anticipation of the pair testing—and potentially breaking—the 1.27300 resistance. Should the price retreat, the region around 1.2559 presents a valuable support zone for bullish entries, with the overarching trend firmly pointing upwards.
Technical analysis: A technical breakout above the pivotal 1.264 resistance zone, which it is now going to testing as a support level, has set a constructive tone for further appreciation. This bullish sentiment is fortified by the pair currently trading above the 20-period Simple Moving Average on the 4-hour chart, indicating sustained upward pressure. The next significant hurdle lies at the recent peak around 1.27300, where a breach could signal continued bullish advancement.
Our position: Backed by the underlying fundamental shift in the USD’s trajectory, we are monitoring the GBP/USD for potential long entries. The strategy is to leverage the tactic in anticipation of the pair testing—and potentially breaking—the 1.27300 resistance. Should the price retreat, the region around 1.2559 presents a valuable support zone for bullish entries, with the overarching trend firmly pointing upwards.