While the GBP/USD pair reached a promising target of 1.3585 yesterday, traders are now watching a critical resistance zone near 1.3600! Technical indicators suggest a potential rebound is brewing after recent dips to 1.3525. The currency pair’s movements are showing classic consolidation patterns within the 1.3525-1.3631 range.
August began with strong buyer momentum as GBP/USD closed July at 1.3203. The monthly candle showed bullish characteristics with no lower shadow – a clear sign the bulls were in control from day one! This upward trend has continued through mid-August, with Fibonacci levels pointing to 1.3789 as the next major target if momentum persists. According to trend analysis, we could see a potential pullback to 1.3386 level after reaching the 14.6% retracement at 1.3539.
Pound’s bullish August surge continues, with all signs pointing to 1.3789 as momentum builds from July’s strong close!
For today’s trading session, keep your eyes on several key price levels. If the pair maintains position above 1.3475, expect bullish momentum to continue toward testing 1.3600 again. Breaking through this resistance could open the door to 1.3745 and possibly even 1.3860 in coming sessions! Technical analysis from Rami Abu-Draa identifies these resistance levels as crucial for potential market corrections.
Support zones are clustering around 1.3360-1.3490, with stronger foundation at 1.3250. Any drop below 1.3360 might trigger a sharper decline toward 1.3140, so place your stops accordingly! Implementing trailing stops can help secure profits while managing risk during these volatile market conditions.
Today’s UK CPI data release will likely shake things up! Analysts expect inflation to inch up from 3.6% to 3.7%, while core CPI should hold steady at 3.7%. These numbers could reinforce the Bank of England’s cautious stance on rate cuts.
UK bond yields have been surging lately, with the 10-year gilt reaching 4.73% – its highest since May! This yield advantage makes the pound more attractive to investors seeking returns.
The upcoming Jackson Hole Symposium might also provide fresh directional cues for GBP/USD. Smart traders are preparing for both scenarios – a breakout above 1.3600 or a pullback to test support levels.
Which way will the pound jump? Get ready for some action!
