We looked at the GBPUSD as Friday’s session was wrapping up. The pair broke free from trend line support on August 17th and then retested the area as new resistance between August 18th and the 21st.
So far, the pair is respecting the levels we’ve had outlined quite well. Last week hit a low of 1.2774, just one pip above the level I illustrated in August 20th forecast.
For the week ahead, I’ll be watching to see how price reacts should buyers retest the 1.2970 area. Considering the trend line that extends from the March low and the key horizontal level, this has become a confluence of resistance. A sell signal from the area could present a favorable opportunity to get short.
Alternatively, a daily close back above 1.2970 would suggest that control has flipped back to buyers. It would also expose the July 18th high at 1.3125. Key support for the week ahead comes in at 1.2770.
So far, the pair is respecting the levels we’ve had outlined quite well. Last week hit a low of 1.2774, just one pip above the level I illustrated in August 20th forecast.
For the week ahead, I’ll be watching to see how price reacts should buyers retest the 1.2970 area. Considering the trend line that extends from the March low and the key horizontal level, this has become a confluence of resistance. A sell signal from the area could present a favorable opportunity to get short.
Alternatively, a daily close back above 1.2970 would suggest that control has flipped back to buyers. It would also expose the July 18th high at 1.3125. Key support for the week ahead comes in at 1.2770.