GBPUSD Weekly Outlook: New perspective for the week | Follow-up

This video provides a comprehensive analysis of the bullish and bearish sentiment in GBPUSD, focusing on price action-based technical analysis of support and resistance levels within the 4-hour timeframe.

In the previous week, Federal Reserve Chair Jerome Powell emphasizes the necessity for further rate hikes, and adding to the market volatility, the Bank of England surprises with a larger-than-expected rate hike, causing a stir in investor sentiment. This bullish attempt is evident on the charts around the $1.27000 zone, reflecting a momentary boost following the Bank of England's 50 basis point increases to a nearly one-year high.

Traditionally, higher interest rates lend support to currencies, but the Pound Sterling faces the risk of a potential recession in the U.K., prompting investors to seek refuge in safe-haven assets like the U.S. dollar. U.K. retail sales data, released recently, reveals a 2.1% annual decline in May, further indicating an economic slowdown.

On the U.S. economic front, Federal Reserve Chair Jerome Powell concludes his two-day testimony before Congress, reiterating the potential for at least two more interest rate hikes this year to combat rising inflation.

Looking ahead, the trajectory of the Pound Sterling will be influenced by upcoming announcements of Gross Domestic Product data from both economies this week. In light of these latest economic developments, questions arise: If the larger-than-expected rate hike from the Bank of England fails to generate positive price movement for the Pound, how will the United Kingdom navigate its persistent inflationary pressures?

This video illustrates a comprehensive analysis of the bullish and bearish sentiment in GBPUSD, focusing on a technical examination of support and resistance levels within the 4-hour timeframe. We uncover how these critical levels can unlock potential trading opportunities for the upcoming week. Notably, I highlighted a key level at the $1.27000 zone, coinciding with the ascending trendline identified in the 4H timeframe. The market's response to this zone at the beginning of the week will wield considerable influence over the direction of price action in the days to come.

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Disclaimer:
Trading on margin in the foreign exchange market (including commodities, CFDs, stocks, etc.) carries a high level of risk and may not be suitable for all investors. The content of this speculation (including all data) is provided by me for educational and informational purposes only to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not accept any responsibility for its accuracy.

It is important that you carefully consider your investment experience, financial situation, investment objectives, and risk tolerance level, and seek advice from an independent financial advisor to assess the suitability of your situation before making any investment.

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Please note that past performance is not necessarily indicative of future results.

Comment:

It is crucial to recall the significance we placed on the $1.27000 level, which has served as a robust support for buying power in recent weeks. The fact that the price continues to stay above this level suggests that there is still potential for a buying opportunity. However, if the bears make a substantial effort and manage to break below the key level of the week at $1.27000, it would indicate a favorable direction to consider selling opportunities. We will delve deeper into this analysis during our live session later this morning.

Good Morning

Trade closed: stop reached:

The stop-loss level has been reached, prompting us to regroup and reassess the new opportunities depicted on the chart and discussed in our live session today. It is important to note that we require confirmations following the breakdown of the support and key level before considering the opening of a sell position.

Trade active:

The buying power of the $1.27000 zone has once again demonstrated its strength, as it saw a bullish move of 40 pips in the early hours of today. The question arises: will we witness a definitive breakout of the $1.27500 level today, or will the range-bound conditions persist? Currently, buying opportunities above the $1.27500 level appear promising, but we need to keep an eye on the upcoming U.S. economic data that will be released later in the day for any hints or indications.

Good Morning

Trade active:

The persistent selling pressure at the $1.27500 level indicates a significant presence of sellers in that zone, resulting in the breakdown of the identified ascending trendline on the 4H time frame. Selling opportunities on our radar as long as price remains below the $1.2400 zone with the privilege of adding more opportunities at the breakdown of the levels identified on the chart.

Good Morning

Trade active:

UPDATE

Secure all sell positions

Trade active:

We have accumulated around 200 pips in profit across three positions. It is advised to secure the current sell positions now.

Trade closed: target reached:

Our TP (take profit) target has been achieved, resulting in an approximate gain of 300 pips from three positions, as buying pressure resumes in the vicinity of the $1.26100 zone. We will be monitoring opportunities to enter buy positions when there is a breakout/retest of the $1.26500 zone. It is crucial to wait for confirmation before entering any new buy positions. Additionally, it's important to keep in mind that our expectation for selling remains intact if there is a breakdown/retest of the $1.26100 level.

Trade active:

As the support level at $1.26100 has remained unbroken for the past 18 hours, the fact that the price action has not reached a new low raises suspicions and increases the likelihood of a bullish momentum today. It's important to note that we still consider the possibility of selling opportunities below the $1.26100 level.

Good Morning

Comment:

The market has witnessed limited trading activity within the range of $1.26500 and $1.26100 over the past 48 hours, highlighting a significant level of uncertainty. Nevertheless, the persistent buying pressure observed from the $1.26100 level suggests that sellers are struggling to push prices lower, thereby increasing the likelihood of a breakout above the resistance at $1.26500. This resistance level also coincides with a descending trendline, presenting potential buying opportunities. However, it is important to acknowledge the potential influence of sellers in case the $1.26100 level breaks down. Before considering opening a position, confirmation of such a breakout is necessary.

Good Morning

Trade active:

Buy position triggered; secure buy position as we look out for more opportunities

Trade active:

UPDATE

two buy positions running in profit of approximately 90 pips; secure position now