I entered long at 1.32274, and as of now, GBP/USD is trading at 1.32280, meaning I’m slightly in profit. Based on price action, the pair is consolidating, but the overall trend bias still suggests a bullish continuation.
Technical Outlook
Support Levels:
1.3225 – This level is very close to my entry and is acting as immediate support. If price holds above this zone, my trade remains valid.
1.3205 – This is a stronger support level where previous buying interest emerged. If GBP/USD dips here, I’ll watch for a potential bounce.
Resistance Levels:
1.3265 – This level has been tested today, and price has struggled to break above it, making it a key short-term barrier. If GBP/USD clears it, bullish momentum could accelerate.
1.3295 – A more significant resistance level where selling pressure has emerged previously. If price reaches this zone, I’ll consider adjusting my position accordingly.
Technical Indicators Confirming Price Action
Relative Strength Index (RSI) on the daily timeframe is hovering around 62, indicating bullish momentum but not extreme overbought conditions.
Moving Averages (like the 20-day EMA) continue to trend upward, supporting the bullish bias.
Stochastic RSI on the 1-hour chart has cooled off slightly, suggesting a potential consolidation phase before another push higher.
Fundamental Considerations
UK Inflation came in weaker than expected (2.6%), which could limit GBP upside.
US Retail Sales beat expectations across the board, signaling strong consumer demand and reinforcing USD strength.
Powell’s speech in a few minutes is a major event—if he is hawkish, USD could gain strength and put downward pressure on GBP/USD.
Trade Strategy
Holding the long position:
As long as GBP/USD holds above 1.3225, I’m comfortable keeping the trade open.
A breakout above 1.3265 could signal the next bullish wave toward 1.3295.
Final Thoughts
Right now, my trade is still in a reasonable position, but the next few hours will be critical, especially with Powell’s speech approaching. If GBP/USD holds 1.3225 and clears 1.3265, my long position could continue to perform well.
Technical Outlook
Support Levels:
1.3225 – This level is very close to my entry and is acting as immediate support. If price holds above this zone, my trade remains valid.
1.3205 – This is a stronger support level where previous buying interest emerged. If GBP/USD dips here, I’ll watch for a potential bounce.
Resistance Levels:
1.3265 – This level has been tested today, and price has struggled to break above it, making it a key short-term barrier. If GBP/USD clears it, bullish momentum could accelerate.
1.3295 – A more significant resistance level where selling pressure has emerged previously. If price reaches this zone, I’ll consider adjusting my position accordingly.
Technical Indicators Confirming Price Action
Relative Strength Index (RSI) on the daily timeframe is hovering around 62, indicating bullish momentum but not extreme overbought conditions.
Moving Averages (like the 20-day EMA) continue to trend upward, supporting the bullish bias.
Stochastic RSI on the 1-hour chart has cooled off slightly, suggesting a potential consolidation phase before another push higher.
Fundamental Considerations
UK Inflation came in weaker than expected (2.6%), which could limit GBP upside.
US Retail Sales beat expectations across the board, signaling strong consumer demand and reinforcing USD strength.
Powell’s speech in a few minutes is a major event—if he is hawkish, USD could gain strength and put downward pressure on GBP/USD.
Trade Strategy
Holding the long position:
As long as GBP/USD holds above 1.3225, I’m comfortable keeping the trade open.
A breakout above 1.3265 could signal the next bullish wave toward 1.3295.
Final Thoughts
Right now, my trade is still in a reasonable position, but the next few hours will be critical, especially with Powell’s speech approaching. If GBP/USD holds 1.3225 and clears 1.3265, my long position could continue to perform well.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.