GBP/USD: Assessing Post-Holiday Market Sentiment
The GBP/USD pair is displaying resilience. With the Federal Reserve's recent halt in rate hikes, the pair benefits from the ensuing USD softness.
Technical Insights:
The cable has been adhering to support around the 1.2680 region, with an eye on challenging the descending trendline resistance near 1.2720. A clear break above this trendline is critical for the pair to sustain its bullish outlook. Should it succeed forming a bullish flag, the focus will shift to the 1.2800 resistance as a potential target.
Market Positioning:
Despite the lull in trading due to Boxing Day, the GBP/USD pair holds its ground. The dollar's trajectory, on pause from Fed's rate decisions, presents a selling opportunity for the pair. Any significant pullback could entice long entries, especially if the price action confirms a move above the current resistance.
Outlook:
Maintaining a bullish stance, our strategy aligns with seeking long positions on dips. The pair's ability to stay afloat above the 1.2680 support, amid holiday-thinned markets, may indicate underlying strength, with the next sessions likely to confirm this trend if the resistance is breached.
Technical Insights:
The cable has been adhering to support around the 1.2680 region, with an eye on challenging the descending trendline resistance near 1.2720. A clear break above this trendline is critical for the pair to sustain its bullish outlook. Should it succeed forming a bullish flag, the focus will shift to the 1.2800 resistance as a potential target.
Market Positioning:
Despite the lull in trading due to Boxing Day, the GBP/USD pair holds its ground. The dollar's trajectory, on pause from Fed's rate decisions, presents a selling opportunity for the pair. Any significant pullback could entice long entries, especially if the price action confirms a move above the current resistance.
Outlook:
Maintaining a bullish stance, our strategy aligns with seeking long positions on dips. The pair's ability to stay afloat above the 1.2680 support, amid holiday-thinned markets, may indicate underlying strength, with the next sessions likely to confirm this trend if the resistance is breached.
Trade closed: target reached:
The price moved up and broke out of its descending trend line as expected, showing great strength. the bulls took over and the price moved up rather qucikly. We exited our positions at 1.2788 as that is the resistance of the bull flag it created. Also, we saw a shift in momentum on the dollar so we expected a correction.