GBP/USD Bulls Face Resistance at 1.3800 Level
The GBP/USD currency pair reflects the value of the British pound against the U.S. dollar and is heavily influenced by economic data from both the UK and the US. Today, traders will focus on key releases such as the UK’s Final Services PMI at 9:30 a.m. and the U.S. labor market data at 11:30 a.m., including Average Hourly Earnings and Non-Farm Employment Change. A stronger-than-expected U.S. jobs report could boost the dollar, putting pressure on GBP/USD. In the afternoon, U.S. ISM Services PMI and Factory Orders will also be important, with any upside surprises potentially supporting the dollar further. Additionally, comments from FOMC and MPC members could provide further insights into future monetary policy, adding to market volatility.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The GBP/USD H4 chart shows a clear bullish trend, with the price trading above the 100-period Moving Average (MA), signaling upward momentum. However, the price is approaching a key resistance level around 1.3800, marked by a red box, which could pose a challenge to further upward movement. This suggests the possibility of a short-term pause or pullback as the price tests the resistance. Additionally, the Stochastic indicator is currently in the overbought zone, indicating that a correction or consolidation may be due. If the price fails to break through the resistance, we could see a brief decline or retracement towards the MA. However, if the resistance level is successfully breached, the bullish momentum could resume, with the potential for higher levels. Given the current setup, traders should be cautious, as the price is facing a critical test at this resistance level.
•DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.
