IS THE BULLISH CHANNEL NEARING EXHAUSTION OR JUST GEARING UP?GBPUSD OUTLOOK – IS THE BULLISH CHANNEL NEARING EXHAUSTION OR JUST GEARING UP?
📊 Macro Overview:
The USD continues to soften slightly as markets begin pricing in a potential rate cut by the Fed later in Q3. Meanwhile, the British Pound (GBP) is holding firm, supported by stronger-than-expected UK macroeconomic data—particularly retail sales and inflation figures.
However, UK fiscal concerns remain a headwind, and GBPUSD is highly sensitive to upcoming U.S. data—especially Core PCE and employment figures this week.
📉 Technical Analysis:
On the 1H chart, GBPUSD is moving within a broad ascending channel and is now approaching the upper resistance trendline at 1.3555 – a key zone that could trigger short-term profit-taking.
EMAs 13 and 34 are still in bullish alignment, supporting ongoing momentum.
Despite the bullish setup, current candle structure suggests a potential pullback to the 1.3448 support zone before a continuation higher—if buyers regain control.
🔑 Key Price Levels:
Resistance Zones:
🔸 1.3555 – Channel top resistance
🔸 1.3586 – Extended resistance zone
Support Zones:
🔹 1.3448 – Technical and Fibo confluence
🔹 1.3398 – Major structure support in case of breakdown
🛠️ Trade Scenarios:
✅ Scenario 1: BUY on retracement
Entry: 1.3448 (watch for bullish confirmation on H1)
Stop Loss: 1.3394
Take Profit: 1.3500 → 1.3555 → 1.3585
✅ Scenario 2: SELL scalp from resistance
Entry: 1.3555
Stop Loss: 1.3588
Take Profit: 1.3500 → 1.3460
🧠 Final Thoughts:
GBPUSD remains bullish in structure but is testing key resistance levels. A clean pullback to the 1.3448 region may provide a strong buying opportunity if confirmed by price action. If this level breaks, bearish divergence could kick in and push the pair back to deeper support zones. Stay alert for high-impact economic releases and trade with solid risk management!
