GBP/USD: Consolidation expected after recent gains – UOB Group

💡 DMK Insight

GBP/USD is at a critical juncture, and here’s why that matters: traders should be cautious. With the pair closing at 1.3678, the recent upward movement has pushed it into overbought territory, indicating that further advances may be limited. The resistance levels at 1.3715 and 1.3725 are key watchpoints; if these levels hold, we could see a pullback towards the support zone around 1.3620. This consolidation phase could lead to increased volatility, especially if economic data releases or geopolitical events shake market confidence. It’s also worth noting that a failure to break above 1.3725 could trigger profit-taking from long positions, potentially leading to a sharper decline. On the flip side, if the pair manages to break through these resistance levels, it could signal a renewed bullish trend, attracting more buyers. Traders should keep an eye on the daily RSI and MACD indicators for signs of momentum shifts. Overall, the immediate focus should be on the 1.3715 and 1.3725 levels for potential breakout or reversal strategies.