Chart Drawing: Will GBP/USD Extend Its Uptrend Above 1.3400?

GBP/USD looks poised to extend its multi-month uptrend!

Will Cable see green candlesticks in the next trading sessions?

Here’s what we see on the 4-hour timeframe:

The US dollar is recouping some of the losses it suffered in late December, with traders leaning towards the greenback as geopolitical unrest drives risk aversion and markets expect a gradual rate cut by the Fed.

The British pound did not enjoy the same treatment. ​​​​​​​While the UK economy looks more resilient than many of its peers, sterling had a tough week against the dollar as traders parked themselves in a safe haven ahead of a busy series of economic reports.

That dynamic could change later this week when the UK releases monthly GDP data and Uncle Sam cuts PPI and retail sales figures.

Remember that movements in the direction and conditions of market price volatility are usually driven by fundamental factors. If you haven’t done your funda homework yet British pound and US dollarthen it’s time to look at the economic calendar and stay up to date with the daily top news!

GBP/USD, which has been making higher highs and higher lows since November, is now resting on support around 1.3420, which corresponds to the bottom of the descending channel. Today, this area is even more important as it is near the pivot point at 1.3452 and the 200 SMA.

A series of green candlesticks and a sustained rally could send GBP/USD back towards the highs of 1.3550, with the possibility of a stretch to 1.3700 if momentum gathers.

On the other hand, a deeper pullback and a sustained trade below 1.3400 would put the pair under downward pressure, opening the door to S1 support at 1.3337 and potentially setting the stage for a broader bearish move.

Whichever bias you trade, remember to practice proper risk management and watch for higher-level catalysts that can affect overall market sentiment.

Disclaimer:
Please note that the technical analysis content provided here is for informational and educational purposes only. It should not be construed as trading advice or offering any particular direction. Technical analysis is only one aspect of a comprehensive trading strategy. The technical setups discussed are meant to highlight potential areas of interest for other traders to observe. Ultimately, all trading decisions, risk management strategies and their resulting results are the sole responsibility of each individual trader. Trade responsibly.