GBP/USD had an inconclusive end to last week. Daily price action looked indecisive as the pair came under strong selling pressure in the 1.3560 to 1.3640 zone. GBP/USD opened the week at 1.35340, then early on edged to a low of 1.34906, then floundered, with the pair eventually hitting a high of 1.3647, before strong selling led it to close at 1.35992.
GBP/USD weekly candle (w/e 11 February)
In terms of the daily setup, market structure still points to a continuation of the downtrend that has gripped the market since September last year. Price is confined between the 8 December swing low of 1.31610 and high of 1.37489. Furthermore, the pair after breaking above the 1.35740 - 61.8% Fib level of the last impulse and corrective move – failed to sustain on the retest and continues to bump up against the 200-EMA.
GBP/USD daily chart
More recently, the pair has been trading in a range between 1.3612 and 1.34902. But a break higher above 1.37489 is needed to confirm any chance of a real shift in trend. While a fall back closer to 1.3433-1.34161, would put price back into a sell zone and would give greater confidence of a resumption of the downward trend.
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