The British pound has been navigating through choppy waters, and traders are eyeing key support levels with keen interest. Despite positive retail sales data, revised GDP figures have halved growth projections, introducing a cautious sentiment.
Treading Cautiously Around Key Levels
The GBP/USD pair is struggling to cement its position above the 1.2700 mark. Bears are on the prowl, aiming to push below 1.2614 to carve out new lows. Bulls, on the other hand, must rally to overcome resistance at 1.2648 to sustain the uptrend.
Momentum Suggests a Bearish Bias Current momentum indicators on the H4 time frame are weak, aligning with a short-term bearish perspective. This outlook is underpinned by pivotal resistance and support levels that traders are monitoring closely:
WR3: 1.2905WR2: 1.2815WR1: 1.2682Weekly Pivot: 1.2592WS1: 1.2459WS2: 1.2369WS3: 1.2236Bullish Engulfing Hints at Upswing
A Bullish Engulfing pattern on the weekly chart signals optimism, with the market trending above the 50-week moving average and eyeing the 100 WMA at 1.2504. Yet, the specter of a decline looms if the pair breaches the significant support at 1.1802.
Intraday Indicators Offer Mixed Signals
Intraday signals present a mix of buying sentiment and caution, with the majority of technical indicators favoring bulls but also acknowledging the potential for neutrality or a downturn.
Assessing Market Sentiment
Market sentiment leans slightly bullish, mirroring last week's disposition. This cautious optimism is echoed in the recent three-day trend, suggesting traders maintain a vigilant stance.
Trading Insights
Bulls may seek opportunities if GBP/USD sustains above 1.2614, with an upward target at 1.2682. Conversely, bears should prepare for a potential slide if support at 1.2614 gives way, possibly extending losses toward 1.2459. Traders are advised to keep a close watch on the sentiment indicators and pivot points, adjusting their strategies in line with the prevailing market pulse.
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