Can the pound hold at 1.3500?

Forex

Central Bank

Summary:

The pound's fundamentals have not improved, and short-term profit-taking has temporarily halted the upward trend; a pullback should be anticipated.

SELL GBPUSD

EXP

TRADING

1.35015

Entry Price

1.34400

1.35700

1.35025 -0.00032 -0.02%

0.0

Pips

Flat

1.34400

Exit Price

1.35015

Entry Price

1.35700

Fundamentals

Recently, the pound rose to 1.35 against the dollar, mainly due to the dollar's decline caused by unexpectedly weak non-farm payroll data. The Bank of England's decision to keep interest rates unchanged by a 6-3 vote and the governor's cautious wording also failed to boost the pound.

This week's UK GDP data will be a short-term test, as the market expects a slowdown in UK economic growth, which may put pressure on the pound in the short term.

Technical aspects

Looking at the 4-hour chart, GBPUSD is currently near a key resistance level of 1.35. The short-term upward momentum is stalled, and the bulls are facing some pressure. A pullback is possible. In the short term, we should continue to pay attention to whether the price can break through the 1.35 level. The nearest support level is around 1.3435.

In terms of trading strategy, you can try shorting near the price of 1.35 to bet on a pullback, with a target of around 1.3435 and a stop loss above 1.356.

Trading advice

Trading direction: Short

Entry price: 1.3500

Target price: 1.3440

Stop-loss level: 1.3570

Downside support levels: 1.3435/1.3400

Upward resistance levels: 1.3540/1.3600

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