GBP/USD is knocking on a key range resistance area.
Will Cable turn lower as it did on previous retests, or are we finally looking at a potential breakout in the next couple of days?
Let’s zoom in on the 4-hour time frame:
GBP/USD 4-hour Forex Chart Faster with TradingView
The U.K. CPI is due this week, and traders may largely shrug off a cooler print as they focus on pricing in March’s oil shock.
But if U.S.-Iran tensions continue to ease or U.K. PMI data disappoints, then Sterling could come under pressure again as markets shift back toward pricing in future Bank of England (BOE) interest rate cuts.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and the British pound, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
GBP/USD has been stuck in a 200-pip range all month and is now testing the 1.3450 area, which lines up with range resistance. It doesn’t help the bulls that the R1 (1.3464) Pivot Point could also attract selling pressure.
Watch for decisively bearish candlesticks that could kick off downside momentum, potentially dragging GBP/USD toward the 1.3350 mid-range and Pivot Point level, or even the 1.3250 range bottom near the S1 (1.3217) Pivot Point line.
That said, if this week’s catalysts bring in enough buying pressure to push GBP/USD above the 1.3450 resistance, then a move toward 1.3600 near the R2 (1.3589) Pivot Point could be in play, with higher inflection points like 1.3750 also on the radar.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art zooms in on GBP/USD’s descending channel. But as any pro will tell you, even the cleanest trend-following setup can fall apart if the trader doesn’t stay disciplined when price starts testing the level.
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Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
