GBPUSD is testing neckline resistance as sellers earlier failed to hold price below psychological 1.3000 level. What should buyers do at the moment?
12 September, OctaFX – A positive opening across European equity markets, pointing to improving risk sentiment prompted some softening in the US Dollar and helped the pair to rebound around 45-50 pips from an intraday low level of 1.2993.
The uptick wasn’t backed by any fresh news/development and thus, lacked any strong follow-through momentum/conviction. Moreover, a modest USD slide turned out to be short-lived and was quickly bought into, which further collaborated towards keeping a lid on any meaningful up-move.
GBPUSD Testing Neckline Resistance
The British pound has moved towards neckline resistance against the US dollar, as sellers earlier failed to hold price below psychological 1.3000 level.
The GBPUSD pair fell sharply from the 1.3086 level on Tuesday due to a strong recovery in the US dollar Index. Sellers now need to break the 1.2985 support level, while buyers need to quickly break the 1.3040 or face losing bullish momentum.
- The GBPUSD pair is only bearish while trading below the 1.2985 level, key support is found at the 1.2955 and 1.2900 levels.
- If the GBPUSD pair moves above the 1.3040 level, buyers may attempt to test the 1.3086 and 1.3101 levels.
This article about GBPUSD Testing Neckline Resistance was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.