FX.co ★ GBP/USD

GBP/USD is gradually trying to recoup part of the recent drop, but for now it looks more like a technical rebound than a trend reversal. On the higher timeframes the pound remains below all the main EMAs, so the medium-term initiative is still with the sellers. Intraday the picture looks a bit better. On the hourly chart buyers managed to hold the 1.3320 support, MACD has turned upward, and the price is slowly approaching the first resistance zone. If it manages to consolidate above 1.3350–1.3360, the next target could be the 1.3380–1.3400 area, where sellers will most likely try to seize the initiative again. For now, the key level for me remains 1.3320. This is exactly where the boundary currently lies between a normal correction and a new leg down. Losing this support will open the way to 1.3300 and then to 1.3280. The fundamental backdrop also does not favor sharp moves. The market is gradually trimming positions ahead of important US data, so volatility may remain high and direction can change quite quickly. At such times the market often takes out stops first and only then determines the further direction. For now I remain cautious. Buyers have finally started to show some activity, but as long as the pound is trading below the main moving averages, I’m not ready to talk about a full-fledged reversal. For me it’s more important now to see a confident consolidation above the nearest resistance levels than to try to catch the bottom.