The GBPUSD pair strengthened towards the 1.2650 resistance level last Friday and held its ground, signaling a possible rekindling of a substantial bullish trend. This shift occurs in the shadow of affirmative Brexit discussions and glimpses of economic respite driving the sterling rates upward. Conversely, the waning US dollar due to global uncertainties further escalates GBP in comparison to USD.
Technical indicators imply a high probability of the bullish trend persisting, particularly if the pair manages to shatter the resistance zone. If this event transpires, traders could anticipate the next significant resistance around 1.2800. Yet, a downward correction remains a possibility if critical support levels at 1.2500 fail to hold.
A current muted bearish channel could morph into a bullish flag pattern if the resistance at 1.2670 is defeated, potentially initiating price surges starting at 1.2760 and potentially peaking at 1.2827. If a position above 1.2650 fails to be established, the price might face compensatory bearish pressure, potentially triggering a short-term price dip and a shift towards the next fitting level at 1.2540.
The day’s forecasted trading bracket stretches from the 1.2570 support to the 1.2750 resistance, suggesting a neutral trend prediction. The deployed trading range serves as a foundation for market decision-making, encapsulating potential high points and lows within antecedent market conditions. Investors and traders should keenly observe these levels for strategic market activity.
The euro made considerable strides against a raft of major competitors on Monday, due to escalating inflationary indications, while the US dollar experienced minor losses against most significant rivals, reflecting weak data and future economic event predictions. However, the present tension-filled global marketplace, infused with apprehension over the US economy’s health, has infused uncertainty into currency trading dynamics, with investors seemingly preferring the euro over traditional safe-haven currencies like the dollar.
Following the midday evaluation, the GBPUSD pair has broken through the 1.2670 barrier, exhibiting robust strength. Concurrently, the EURUSD pair seems to be rising, eyeing the 1.0860 mark, while the EURCHF pair has transitioned into a positive terrain, suggesting potential investment opportunities.
