Cable looks like it’s gearing up for another bullish swing after bouncing off a support zone!
Will GBP/USD extend its months-long trend in the next trading sessions?
Let’s take a look at the 4-hour time frame!
GBP/USD 4-hour Forex Chart by TradingView
The British pound caught a few pips against the U.S. dollar on Monday, thanks to a combo of dovish Fed expectations and improved risk sentiment.
Fed Chair JPow is up later today. If he repeats the Fed’s cautious stance on further easing, we could see the dollar extend its weekly losses. But if he walks back and emphasizes Uncle Sam’s labor market weakness, the Greenback could shoot up against its counterparts.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the British pound and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
GBP/USD has been climbing an observable uptrend since August, but the pair stalled at 1.3650 before easing lower.
Buyers stepped in around 1.3450, a level that lines up with the channel support that has guided the uptrend and sits right on top of the 100 and 200 SMAs on the 4-hour chart.
As long as the pair holds above those moving averages, momentum favors another push toward 1.3600 and possibly a retest of 1.3650 or fresh September highs. A quick dip back to the 1.3450 trend line wouldn’t be out of the question before buyers make another run.
If the channel breaks down and price holds below 1.3400, though, then sellers could take control and drive the pair toward 1.3350 or even 1.3300.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
