Introduction
The GBP/USD pair has been showing mixed signals lately, with the price rebounding from an intraday low but still remaining indecisive after reversing from a one-month high. This article will provide an overview of the current situation of the GBP/USD pair and its support confluence, along with the key levels that bulls need to break to move towards mid-February highs.
GBP/USD rebounds from intraday low but remains indecisive
The GBP/USD pair has rebounded from an intraday low but is still indecisive after reversing from a one-month high the previous day. This suggests that the market is currently uncertain about the future direction of the pair.
The price is currently trading around the 1.2175 level, which is above the one-week-old ascending trend line and the weekly range’s lower band. This support confluence strengthens the 1.2140-35 level, which is expected to provide strong support to the pair.
Support Confluence at 1.2140-35
The support confluence at 1.2140-35 is a key level for the GBP/USD pair. It consists of the one-week-old ascending trend line and the weekly range’s lower band, which adds to its significance.
The ascending trend line suggests that there is buying pressure in the market, which could potentially push the price higher. On the other hand, the weekly range’s lower band suggests that there is selling pressure, which could potentially push the price lower.
Overall, the support confluence at 1.2140-35 is a critical level for the GBP/USD pair. If the price breaks below this level, it could signal a bearish reversal in the market. However, if the price holds above this level, it could suggest that the bulls are still in control.
Bulls need validation from 1.2205
To probe mid-February highs, the bulls need validation from the 1.2205 level. If the price breaks above this level, it could signal a bullish continuation in the market.
The mid-February highs are around the 1.4240 level, which is a key resistance level for the GBP/USD pair. If the bulls manage to break above the 1.2205 level, it could suggest that they have the momentum to push the price towards this resistance level.
Conclusion
The GBP/USD pair is currently indecisive after rebounding from an intraday low but reversing from a one-month high. The support confluence at 1.2140-35 is a critical level for the pair, and if the price breaks below it, it could signal a bearish reversal. On the other hand, if the price holds above this level, it could suggest that the bulls are still in control. To move towards mid-February highs, the bulls need validation from the 1.2205 level. The overall outlook for the pair remains mixed, and traders should be cautious when trading it.
