The British Pound (GBP) has recently experienced a significant move against the US Dollar (USD), breaking below a key support level. Let’s break down what this means for traders and what to expect in the coming days.
Recent Developments
- GBP/USD has broken below the crucial 1.2938 support level
- This suggests that the upward move from 1.2612 may have completed at 1.3044
Short-Term Outlook
We’re likely to see range-bound trading between two key levels:
- Lower bound: 1.2800
- Upper bound: 1.3044
Potential Bullish Scenario
If the 1.2800 support holds firm, we could see a resumption of the upward trend that started at 1.2612. Here’s what to watch for:
- A break above 1.2950 resistance could trigger another push towards the previous high of 1.3044
- If the pair manages to break above 1.3044, the next target would be the 1.3150 area
Support Levels to Monitor
- Initial support: 1.2890
- If broken, watch for: 1.2830
- Key support: 1.2800
Trading Strategy
Traders might consider:
- Looking for buying opportunities near the 1.2800-1.2830 support zone
- Taking profits or tightening stops as the pair approaches the 1.3044-1.3150 resistance area
- Being cautious of a potential breakout above 1.3044, which could signal a continuation of the broader uptrend
Remember to always use proper risk management techniques and consider multiple timeframes when making trading decisions based on this analysis.