Symbol - GBPUSD
GBPUSD is attempting to capitalize on a potential trend reversal amid the ongoing correction of the U.S. dollar. The price is currently testing a key resistance level within a consolidation phase, indicating a possible breakout. On the daily timeframe, the price remains above the previously breached trendline, with the effort to surpass the resistance providing insights into market sentiment. A continued correction in the dollar could benefit the British pound, particularly if the U.S. Dollar Index breaks below 107 and moves toward the 106-105 range.
From a technical perspective, attention is centered on the 1.257 level, which acts as a crucial resistance threshold. A sustained break and consolidation above this level may trigger a rally.
Resistance levels: 1.2575, 1.2718
Support levels: 1.250, 1.2377
I do not rule out the possibility of a retest of the 1.250 support level to accumulate liquidity before further upward movement. The dollar is expected to continue its correction following remarks from Trump and Powell regarding potential rate cuts.
GBPUSD is attempting to capitalize on a potential trend reversal amid the ongoing correction of the U.S. dollar. The price is currently testing a key resistance level within a consolidation phase, indicating a possible breakout. On the daily timeframe, the price remains above the previously breached trendline, with the effort to surpass the resistance providing insights into market sentiment. A continued correction in the dollar could benefit the British pound, particularly if the U.S. Dollar Index breaks below 107 and moves toward the 106-105 range.
From a technical perspective, attention is centered on the 1.257 level, which acts as a crucial resistance threshold. A sustained break and consolidation above this level may trigger a rally.
Resistance levels: 1.2575, 1.2718
Support levels: 1.250, 1.2377
I do not rule out the possibility of a retest of the 1.250 support level to accumulate liquidity before further upward movement. The dollar is expected to continue its correction following remarks from Trump and Powell regarding potential rate cuts.
Trade active
GBPUSD declined on Wednesday after hitting a yearly peak at $1.2630The pair slipped to $1.2600 when data showed that inflation rose 3% in January, exceeding forecasts. This complicates the Bank of England's plans to cut rates amid a weak economy.
An unexpected rise in inflation usually supports the currency, but the pound has weakened on concerns about an economic slowdown. Further volatility is expected and the levels of $1.2671 and $1.2787 remain the next targets.
Trade closed manually
The price growth towards the target is taking longer than anticipated.Long position in +95 pips in profit as of now.
Closing here.
Note
The first target has been reached. Although I closed my long position yesterday afternoon, the price subsequently touched the target area during the night.Note
CMP 1.2900Both targets were reached.
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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.