FX.co ★ FX-Perfact | GBP/USD

GBP/USD Daily Timeframe: GBP/USD's daily movement shows an increasingly positive technical structure after the price successfully resumed its upward movement from its mid-June low. The chart shows the pair currently trading around 1.3647 and has just moved closer to its highest level in the period. This increase is an important signal, as the price has not only broken through several horizontal resistance levels but also moved further above the 100- and 200-day moving averages. With the price positioned above both indicators, the main trend on the daily timeframe remains bullish. The 100-day moving average (MA), shown by the blue line, is located around 1.3420, while the 200-day moving average (MA), shown by the red line, is slightly lower, at around 1.3400. The 100-day moving average (MA), which has moved above the 200-day moving average, suggests that medium-term upward momentum remains stronger than bearish pressure. Furthermore, the price, currently well above both moving averages, indicates continued buyer dominance. Under these conditions, the 100- and 200-day moving averages (MAs) can be viewed as dynamic support areas if a downward correction occurs in the next phase. Historically, GBP/USD has experienced quite volatile movements on the chart. The price previously fell to around 1.3139–1.3211 in mid-June. This area then became a key point as selling pressure began to lose momentum, and the price formed a strong rebound. Afterward, GBP/USD began to build a higher low structure and gradually moved upward. This recovery became even more convincing when the price successfully moved back above the 100- and 200-day moving averages. The change in price position relative to these two moving averages can be seen as confirmation that the previous bearish pressure is weakening. After successfully breaking through the moving average area, GBP/USD continued to rise and tested horizontal resistance several times. Resistance around 1.3434 became a key area that previously served as a barrier. The price then managed to move above this level, strengthening the bullish structure. The next resistance area is located at 1.3483. This level has also been successfully passed in the last increase, so technically there is a chance of a change in function from resistance to support if a price correction occurs.

The 1.3517 and 1.3570 areas are resistance zones that play a significant role in the development of the current trend. Based on the chart, GBP/USD has successfully broken through both levels and then continued rising, approaching the 1.3647 area. Successive price breaks through resistance levels indicate strong buying momentum. However, the higher the price level after a relatively rapid rise, the greater the likelihood of profit-taking. Therefore, although the underlying structure remains bullish, the market still has the potential for a technical correction before determining its next direction. The main resistance area to watch is currently located at 1.3657. This level is the closest horizontal resistance and is located near the price peak seen on the chart. The recent price was very close to this zone, so the market's response to the 1.3657 level will be a crucial factor in determining the continuation of the trend. If GBP/USD can successfully break through 1.3657 and maintain its position above it, this could confirm that buyers still have control, and the opportunity for a continuation of the bullish trend remains open. Conversely, if the price fails to break through this area several times and forms strong resistance, the market could potentially enter a consolidation or correction phase. In a correction scenario, the nearest support level can be seen at 1.3570. Because this level previously served as resistance, after a breakout, it has the potential to transform into support. As long as the price remains above 1.3570, the short-term upward trend is relatively intact. If selling pressure pushes the price below this level, the next support level is located around 1.3517. This area is crucial because it serves as a breakout level before the price moves towards its current high. The next support levels are at 1.3483 and 1.3434. Both areas are closely related to the previous upward trend. A decline towards these areas can be considered a reasonable correction as long as the price hasn't formed a significant lower low. Furthermore, the 1.3434 area is close to the 100-day moving average (MA) and 200-day moving average (MA). Therefore, if a correction reaches this area, there is the potential for a confluence of horizontal and dynamic support levels. The 100-day moving average (MA) around 1.3420 is a key level for gauging the strength of the medium-term trend. As long as the price remains above the 100-day moving average (MA), the bullish bias remains technically sound. Below, the 200-day moving average (MA) around 1.3400 provides deeper dynamic support. A price break below these two moving averages would signal weakening bullish momentum. If this occurs in conjunction with a failure to maintain horizontal support at 1.3434, a correction could develop toward the 1.3331 area. The 1.3331 area is a key horizontal support area that previously served as a price rebound zone. If selling pressure intensifies, further support can be found at 1.3267 and 1.3211. Meanwhile, the 1.3139 level serves as major support and is one of the lowest points visible on the chart. As long as the price remains well above this zone, the GBP/USD's broad structure remains significantly better than the bearish conditions seen in mid-June. From a price action perspective, the recent movement indicates a fairly aggressive bullish impulse. The price managed to post consecutive gains and break through several resistance levels before reaching the 1.3647 area. However, the price's position, which is already quite far above the 100- and 200-day moving averages, also indicates that the distance between the price and the moving averages is starting to widen. This condition does not automatically mean the price must fall, but rather opens the possibility of a correction to retest the previously broken support area.