The British pound gained on Monday, bolstered by broad-based U.S. dollar weakness amid falling U.S. Treasury yields on bets that the Fed’s tightening cycle is nearing its end. Against this backdrop, GBP/USD rose about 0.5% to trade slightly below 1.2400, approaching confluence resistance at 1.2450, a technical barrier where the 61.80% Fib retracement of the 2022 slump aligns with the highs of December last year and January this year.
A look at the daily chart shows that bullish momentum has tended to fade around the 1.2450 handle on several occasions over the past four months, leading to a pullback on each occasion. If history were to repeat itself, which is a key premise of technical analysis, cable’s recent advance may be running out of gas. This means that sterling could be on the verge of a downside correction in the coming days.
GBPUSD h1 price is in an uptrend. The pair is currently at an important resistance area. Earlier today, it is possible that the price will have a deep correction before continuing to move up. It is recommended to wait to buy when the price returns to 1.2320, SL: 1.2260, TP: 1.2450
A look at the daily chart shows that bullish momentum has tended to fade around the 1.2450 handle on several occasions over the past four months, leading to a pullback on each occasion. If history were to repeat itself, which is a key premise of technical analysis, cable’s recent advance may be running out of gas. This means that sterling could be on the verge of a downside correction in the coming days.
GBPUSD h1 price is in an uptrend. The pair is currently at an important resistance area. Earlier today, it is possible that the price will have a deep correction before continuing to move up. It is recommended to wait to buy when the price returns to 1.2320, SL: 1.2260, TP: 1.2450
