Last week saw the GBPUSD gain nearly 300 pips from Tuesday’s low at 1.2108. However, the pair finished Friday’s session just below key resistance in the 1.2400 region.
This area has acted as a pivot since November 22nd and will likely attract sellers in the coming week.
With that said, buyers managed to carve out a weekly bullish engulfing candle. This alone hints at a level of strength that I don’t want to step in front of, at least not right now.
So while bearish price action could form near 1.2400, I’ll likely pass on any short setup for now as I don’t want to fight a bullish pattern on a higher time frame.
At the moment, key support comes in at 1.2215 while resistance remains 1.2400/10. A daily close above this area would expose the recent high at 1.2568 and possibly the current 2017 high near 1.2670.
This area has acted as a pivot since November 22nd and will likely attract sellers in the coming week.
With that said, buyers managed to carve out a weekly bullish engulfing candle. This alone hints at a level of strength that I don’t want to step in front of, at least not right now.
So while bearish price action could form near 1.2400, I’ll likely pass on any short setup for now as I don’t want to fight a bullish pattern on a higher time frame.
At the moment, key support comes in at 1.2215 while resistance remains 1.2400/10. A daily close above this area would expose the recent high at 1.2568 and possibly the current 2017 high near 1.2670.
