GBP/USD Weekly Forecast: Navigating Key Support and Resistance Levels

GBP/USD rose further to 1.3418 last week but retreated. The prevailing bias remains neutral for this week’s outlook. While the fall from 1.3675 was incomplete, it should have already reached 1.3135. Continued ascent is expected as long as support at 1.3294 remains intact. Should price rise above 1.3418, targets include a 61.8% retracement of the 1.3675 low, pointing toward 1.3469.

In the broader market context, price action from 1.3867 acts as a corrective pattern within the extended-upward trend originating from 1.0351 (the 2022 low). With support at 1.3008 still standing, medium-term bullishness persists and a break above 1.3867 is favorable for a subsequent move toward the key resistance at 1.4248 (the 2021 high). However, a firm break of 1.3008 would likely trigger a deeper decline to the 38.2% retracement of 1.0351, landing near 1.2524, accompanied by an increased risk of a bearish reversal.

Examining the extended timeframe, as long as the resistance zone at 1.4248/4480 (38.2% retracement of the 2.1161 level to 1.0351) holds, the long-term outlook remains bearish. In this context, price behavior from 1.0351 is interpreted as a corrective move after the downtrend from 2.1161 (the 2007 high). A decisive break above 1.4248/4480 would constitute a strong indicator of a long-term bullish reversal.

Source link