GBP/USD looks ready to extend a months-long uptrend!
Will Cable see green candlesticks in the next trading sessions?
Here’s what we’re seeing on the 4-hour time frame:
GBP/USD 4-hour Forex Chart by TradingView
The U.S. dollar is clawing back some of the losses it took late in December, with traders leaning into the Greenback as geopolitical jitters drive risk aversion and markets settle into expectations for gradual Fed rate cuts.
The British pound didn’t enjoy the same treatment. Even with the U.K. economy looking steadier than many of its peers, Sterling had a rough week against the dollar as traders parked in the safe haven ahead of a busy run of economic reports.
That dynamic could shift later this week when the U.K. releases its monthly GDP data, and Uncle Sam drops its PPI and retail sales numbers.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the British pound and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
GBP/USD, which has been making higher highs and higher lows since November, is now leaning on support near 1.3420, which lines up with the lower end of a descending channel. That area matters even more today since it sits close to the Pivot Point at 1.3452 and the 200 SMA.
A run of green candlesticks and a steady push higher could send GBP/USD back toward the 1.3550 highs, with room to stretch toward 1.3700 if momentum builds.
On the flip side, a deeper pullback and sustained trading below 1.3400 would expose the pair to downside pressure, opening the door to the S1 support at 1.3337 and potentially setting the stage for a broader bearish shift.
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.
Disclaimer:
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.
