Pound Retreats After Stalling at Resistance, Uptrend Still Intact

gbp_usd_article image

The British Pound (GBP) retreated against the US Dollar (USD) on Thursday after failing to break above key resistance levels. Despite this pullback, the overall uptrend for GBP/USD remains in play.

Reasons for the Pullback:

  • Resistance at 1.2700: Buyers struggled to push the pair above 1.2700, a key resistance level.
  • USD Rebound: The US Dollar staged a comeback after initial weakness due to expectations of Fed rate cuts.

Technical Outlook:

  • Upward Bias: Despite the pullback, the momentum indicators (RSI) suggest the uptrend is still intact.
  • Key Levels to Watch:
    • Resistance: 1.2709 (April 9th high) and 1.2803 (March 21st high) could be future hurdles for the bulls.
    • Support: A break below 1.2634/31 (confluence of May 3rd high and 100-DMA) could indicate a deeper pullback towards the 50-DMA (1.2594).

The GBP/USD price action is consolidating after encountering resistance. A break above 1.2709 could signal further upside, while a drop below 1.2634/31 could suggest a more significant pullback. However, the uptrend remains the dominant force in the medium term.


Just before you go, get
100 daily signals

After registration, contact us via chat and

provide us with the code #100_signals