GBPUSD → What could favorably affect the price?

16 Kas 2023

GBPUSD forms a false breakdown of the channel resistance forming a sell-off in the market.
And it logically fits into the technical and fundamental situation on the market and we see a correction to the support area.



On the high timeframe we see a pattern between DXY and GBPUSD . For the dollar index yesterday there was positive news, which negatively affects the price of the currency pair and we see a sell-off after a false breakout of the resistance area. It is worth paying attention to the support levels amid the correction: 1.2337, and in extreme case at 1.2272, perhaps the growth of the pair can continue after the retest of support in the uptrend.

An important nuance for us is also the ascending price channel, which plays perhaps the main role at the moment. The price reacts to the channel boundaries and we can use the range trading strategy: buy from support and sell from resistance, the current trend is on our side.

Support levels: 1.2337, 1.2272
Resistance levels: 1.2421

Most likely before the news publication at 13:30 GMT the correction may continue, but since the market is expecting weak Initial Jobless Claims data, and this information may favorably affect GBPUSD, I will wait for price strengthening from the mentioned support area after the test.

Regards R. Linda!

16 Kas 2023

Not

A weaker dollar on the back of Initial Jobless Claims data may strengthen GBPUSD
Consolidation of the price above 1.2421 will form a bullish potential