GBP faces strong resistance 5/12/2024

The British pound experienced negative trading against the U.S. dollar following a retest of the The technical outlook for GBP/USD remains unchanged, with the pair showing continued negative stability below the critical resistance level of 1.2730.

Technical Analysis:

• Bearish Indicators:
  • The 4-hour chart reveals a bearish technical structure supporting downward momentum.
  • Trading remains stable below the primary resistance level at 1.2730, reinforcing the likelihood of a bearish trend.

Scenario Analysis:

1. Bearish Scenario (Most Likely):
   • As long as the pair trades below 1.2730, the downward trend is expected, with targets at 1.2660 and 1.2600.
   • A confirmed break below 1.2600 could accelerate bearish momentum, paving the way for a move toward 1.2570.
2. Bullish Alternative:
   • A sustained break above 1.2730, with at least one hourly candle closing above this level, could invalidate the bearish outlook.
   • This shift would likely trigger an upward trajectory, targeting 1.2780 and extending to 1.2840.

Key Considerations:

The risk level is elevated due to geopolitical uncertainties, making robust risk management essential as all scenarios remain possible.

High-Impact Economic Data:

Today’s release of U.S. “Weekly Unemployment Claims” could introduce significant volatility, impacting GBP/USD movements.

Risk Warning:

Disclaimer: Trading in CFDs carries inherent risks. The analysis provided herein is not a recommendation to buy or sell, but rather an interpretation of the current price movement on the chart.

S1: 1.2660	R1: 1.2750
S2: 1.2600	R2: 1.2780
S3: 1.2570	R3: 1.2840