GBPUSD: Market correction may end soon

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Overall, GBPUSD is currently in a consolidation phase after breaking out of a downward channel at 1.2796. It is currently trading around 1.2792, reaching a low of 1.2811, marking a 0.03% decrease for the day. So, what are the reasons and factors driving this currency pair?

In terms of influencing factors: The modest increase in the main currency pair is supported by a weaker US Dollar. However, cautious market sentiment ahead of important US events may boost the Greenback and limit the upside potential for this currency pair.

Regarding the outlook for GBPUSD: On the 1-hour chart, GBPUSD shows efforts to change the trend based on a weakened USD. In case GBPUSD fails to surpass the EMA 34,89 resistance level around 1.2795-1.2800, it is likely that the price will test the previously broken support level at 1.27765-1.2760. This fundamental base could continue the recovery trend.

Resistance levels: 1.2800, 1.2820, and 1.2850
Support levels: 1.2785, 1.2775, and 1.2760

Price is expected to recover with specified targets in mind.

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Comment:

GBPUSD increased without correction