GBP/USD Awaits Breakout as Monetary Policy and Geopolitical Storms Loom

Economic

Summary:

The Pound Sterling holds steady near 1.3590 against the US Dollar as traders brace for interest rate decisions from the Fed and BoE this week.

BUY GBPUSD

Close Time

CLOSED

1.36002

Entry Price

1.37500

1.35100

1.33273 -0.00039 -0.03%

90.2

Pips

Loss

1.35100

Exit Price

1.36002

Entry Price

1.37500

The Pound Sterling traded narrowly higher near 1.3590 against the US Dollar on Monday, hovering within the tight range established last Friday, as global investors adopt a wait-and-see approach ahead of crucial monetary policy decisions from both the Federal Reserve and the Bank of England later this week. Sentiment in the GBP/USD market remains subdued, reflecting widespread caution driven by not only domestic economic signals but also growing geopolitical turbulence.

Market expectations for both the Fed and the BoE point toward a status quo outcome, with no change in interest rates. Yet, investors are fully aware that the guidance accompanying those decisions could significantly sway expectations for the months ahead. In the United States, the Federal Reserve is widely anticipated to maintain its federal funds rate within the current 4.25%–4.50% range. However, the central bank’s updated Summary of Economic Projections, particularly the dot plot, is likely to be the key driver for USD sentiment this week. Traders will be seeking clues on whether the Fed plans to keep policy tight well into 2025, especially as it grapples with conflicting signals from inflation data and a shifting fiscal landscape under President Donald Trump’s new economic agenda.

Fed policymakers have been cautious in recent commentary, suggesting that inflationary risks remain and that monetary easing is not yet on the table. Officials appear hesitant to move until they gain more visibility on how Trump’s economic plans — including tax cuts and trade protectionism — will affect consumer prices and broader economic momentum. While headline inflation has cooled, core measures remain sticky, prompting the Fed to advocate patience. The US Dollar Index, which measures the greenback against a basket of major currencies, softened slightly to around 98.00 on Monday, providing some room for the Pound to stabilise.

Across the Atlantic, the Bank of England faces its own balancing act. Markets largely expect the BoE to leave interest rates unchanged at 4.25% during Thursday’s policy meeting. The central bank’s May decision, which included a 25-basis-point cut, was framed as part of a “gradual and careful” approach to policy easing. However, whether that message will be reiterated this week is uncertain, especially after recent data revealed a softening UK labour market. Job growth has slowed markedly in the three months ending April, suggesting that the post-pandemic hiring boom may be losing steam.

A key factor behind the cooling in employment appears to be fiscal in nature. In April, Chancellor Rachel Reeves enacted an increase in employers’ National Insurance contributions, raising them from 13.8% to 15%. The higher payroll tax burden has prompted many businesses to curb hiring plans, adding to concerns that tighter fiscal policy could amplify headwinds in the UK’s economic recovery. With inflation still not firmly anchored and wage pressures easing, the BoE could strike a more cautious tone, even as it opts to hold rates steady.

Investors will also pay close attention to UK inflation data due Wednesday. The May Consumer Price Index report is forecast to show a further moderation in price growth, consistent with the BoE’s view that inflationary pressures are easing gradually. If confirmed, soft CPI data could bolster the case for the BoE to continue its measured path toward policy normalisation. However, any upside surprise would likely inject volatility into GBP pairs and complicate the central bank’s messaging.

Beyond monetary policy, geopolitical developments are increasingly weighing on investor risk appetite. Tensions between Israel and Iran have flared once again, injecting renewed uncertainty into global markets. Over the weekend, Israeli Defence Minister Israel Katz warned that attacks on Iranian territory could escalate if Iran continues missile launches against Israeli targets. In an interview cited by Euronews, Katz declared, “Tehran will burn if it keeps launching attacks on Israel.” Meanwhile, Iran has threatened to block the Strait of Hormuz — a vital conduit for global oil shipments — raising the risk of energy supply disruptions. According to Reuters, Israeli military forces have already destroyed over a third of Iran’s surface-to-surface missile launchers, further intensifying the conflict.

The broader market mood has shifted into risk-off territory as a result, with investors retreating from risk-sensitive assets like the Pound Sterling. Historically, sterling tends to underperform in times of geopolitical stress, particularly when safe-haven flows boost the US Dollar.

Technical Analysis

From a technical perspective, the GBP/USD pair continues to trade within a bullish structure. A rising trendline remains intact, underpinned by a series of higher lows that suggest the current price action is more of a consolidation than a reversal. Key support is seen around the 1.3500 level, which served as a strong base during previous consolidation phases.

A successful retest of this level may attract fresh buying interest if market sentiment stabilises post-central bank decisions. On the upside, immediate resistance lies around 1.3610 — the previous swing high — followed by 1.3650 and 1.3750, the latter marking a key psychological zone and the upper bound of the current bullish channel.

TRADE RECOMMENDATION

BUY GBPUSD

ENTRY PRICE: 1.3600

STOP LOSS: 1.3510

TAKE PROFIT: 1.3750

Risk Warnings and Disclaimers

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Warren Takunda

Economic

Summary:

The Australian Dollar surged on Monday, lifted by improving investor risk appetite and a softening U.S. Dollar, as market fears of a broader Middle East conflict subsided.

BUY AUDUSD

Close Time

CLOSED

0.65498

Entry Price

0.66250

0.64800

0.66377 -0.00006 -0.01%

69.8

Pips

Loss

0.64800

Exit Price

0.65498

Entry Price

0.66250

The Australian Dollar regained its footing on Monday, climbing firmly above the 0.6500 level as traders responded to an improved market mood and signs of diminishing geopolitical risk in the Middle East. AUD/USD rose by around 0.45% intraday, making the Aussie one of the top-performing G10 currencies, underpinned by a combination of risk-on sentiment and a weakening U.S. Dollar.

The sharp rebound in the Aussie followed several days of market anxiety driven by escalating tensions between Iran and Israel. Although the two nations continued to exchange fire for a fourth consecutive day, global markets took solace in the absence of further escalation. Crucially, Iran has not moved to close the Strait of Hormuz—a strategic chokepoint for global oil flows. That development alone eased fears of a broader regional conflict that could have forced the U.S. to become militarily involved, which would have triggered a significant flight to safety.

Investor relief was further supported by efforts from multiple global powers to de-escalate the crisis. China and Russia have both offered to mediate, and former U.S. President Donald Trump is reportedly pressuring both countries to reach a ceasefire. While these diplomatic overtures remain in early stages, they have helped to pull risk assets, including the Australian Dollar, off recent lows.

Still, the geopolitical backdrop remains fragile. Iran's Foreign Ministry revealed that the national parliament is preparing a bill to withdraw from the Nuclear Non-Proliferation Treaty, a move that would significantly escalate tensions with the West. Despite this development, traders appear to be discounting its immediate market impact, focusing instead on the relative calm in the Strait of Hormuz and the absence of further military escalation.

Beyond geopolitics, data from China presented a mixed picture. On the one hand, headline consumer inflation came in above expectations, indicating that domestic consumption may be recovering in Australia’s largest trading partner. That’s typically a bullish signal for the Aussie, which is highly sensitive to China’s demand dynamics. However, industrial production figures disappointed, falling short of expectations and suggesting that China’s recovery remains uneven. This mixed macroeconomic backdrop limited the degree of fundamental support for AUD/USD, though it was not enough to derail the broader upward move.

Meanwhile, the U.S. Dollar continued to retreat across the board, weighed down by declining Treasury yields and softer expectations for the Federal Reserve’s policy path. With markets still digesting last week’s mixed U.S. inflation data and weighing the odds of a September rate cut, the greenback has struggled to regain traction. In the absence of new hawkish signals from the Fed, high-beta currencies like the Australian Dollar have found room to appreciate.

Technical Analysis

From a technical perspective, the AUD/USD pair is exhibiting a clear bullish structure, characterized by higher highs and higher lows. Monday’s advance marks a continuation of that trend, and current price action suggests the pair may be forming a bullish consolidation pattern above the 0.6500 level. This setup typically precedes further upward extension if near-term support levels hold.

The immediate support sits around 0.6465, a level that previously acted as a consolidation base. A dip toward this zone could attract renewed buying interest and reinforce the uptrend. If the pair manages to sustain momentum above this level, it may retest resistance areas around 0.6570 and 0.6590, with a possible extension toward 0.6625 in the coming sessions. However, a daily close below 0.6465 would challenge the bullish thesis and could spark a deeper pullback, shifting near-term sentiment toward a more neutral or even bearish tone, with targets near 0.6445 and 0.6400.

TRADE RECOMMENDATION

BUY AUDUSD

ENTRY PRICE: 0.6550

STOP LOSS: 0.6480

TAKE PROFIT: 0.6625

Risk Warnings and Disclaimers

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Eva Chen

Commodity

Middle East Situation

Summary:

Gold prices surged to $3,452 on Monday before retreating. The strength in gold prices reflects the heightened demand for safe-haven assets amid escalating geopolitical tensions and a broad-based US dollar weakness.

SELL XAUUSD

Close Time

CLOSED

3404.64

Entry Price

3287.00

3475.00

4205.32 +7.41 +0.18%

181.5

Pips

Profit

3287.00

3386.49

Exit Price

3404.64

Entry Price

3475.00

Fundamentals

During the Asian session on Monday, gold prices attracted some buying interest, breaking strongly through the $3,450 mark. The escalation of tensions in the Middle East and increasing expectations for a Fed rate cut propelled gold prices to their highest level in over a month.

Since the weekend, the ongoing conflict between Israel and Iran has intensified, sparking concerns over broader geopolitical ramifications in the region. In this environment of waning risk appetite, capital is flowing into defensive assets like gold. The market currently believes that if the conflict between Israel and Iran further escalates in the coming days, gold prices could reach new all-time highs.

Since the close on Friday, gold prices have recorded their best closing price since April 21 and have formed a bullish candlestick pattern. The Relative Strength Index (RSI) is currently trending upward, indicating that strong bullish momentum is building, and prices are expected to continue rising over the next few trading days. If gold prices break through $3,500, it will open up further upside potential, potentially reaching $3,600.

However, we believe that gold prices' failure to continue rising after Monday's gap-up opening and their subsequent retreat during the European session indicates that the market's heightened emotions have been digested. Meanwhile, investors' attention is shifting to this week's Federal Reserve meeting.

Although the Fed is expected to hold interest rates steady, investors will closely monitor any forward guidance on rate cuts, especially after the US released weaker-than-expected inflation data, which has further reinforced market expectations that the Fed could ease policy as early as September.

Additionally, market participants are awaiting the specific details of President Trump's next round of tariffs. Reports indicate that the White House is preparing to implement these trade measures in the coming weeks. These measures are key to assessing the overall economic outlook and also provide more trading opportunities for gold's trajectory.

Geopolitical Impact Dully Digested; Focus Shifts to Fed Rate Decision_1

Technical Analysis

Amid the escalation of weekend geopolitical conflicts, gold's safe-haven demand surged, causing prices to gap up on Monday and test the seven-week high of $3,452.

The strength in gold prices has buoyed market sentiment. Judging from the recent statements from both sides, we can assume that tensions may ease slightly but remain elevated, which will temporarily cap further upside in gold prices.

Although the technical picture on the daily chart remains firmly bullish, the upward momentum may slow due to some profit-taking and the stochastic indicator entering overbought territory. Meanwhile, gold prices' breakout above the May 7 high of $3,438 aligns with the structural transformation of a head-and-shoulders bottom pattern. Once this pattern is completed, the market may revert to a downward trend.

Trading Recommendations

Trading Direction: Sell

Entry Price: 3442

Target Price: 3287

Stop Loss: 3475

Deadline: July 01, 2025, 23:55:00

Support: 3408/3395/3378

Resistance: 3444/3447/3452

Risk Warnings and Disclaimers

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Warren Takunda

Economic

Summary:

The New Zealand Dollar rises sharply against the US Dollar to trade near 0.6040, gaining on a rebound in global risk sentiment despite heightened tensions between Israel and Iran.

BUY NZDUSD

Close Time

CLOSED

0.60499

Entry Price

0.61600

0.60000

0.57852 +0.00098 +0.17%

49.9

Pips

Loss

0.60000

0.59998

Exit Price

0.60499

Entry Price

0.61600

The New Zealand Dollar (NZD) surged on Monday, marking a significant intraday gain of 0.5% to hover near the 0.6040 mark against the US Dollar (USD), as traders warmed up to riskier assets even in the face of escalating geopolitical tensions in the Middle East. This renewed appetite for risk came despite Israel’s intensification of military operations targeting Iranian nuclear and defense infrastructure.

The uptick in the NZD/USD pair highlights the currency market’s complex dynamics, where traditional risk-off triggers such as armed conflict are being momentarily outweighed by broader macroeconomic expectations — notably the Federal Reserve’s upcoming monetary policy decision.

In a move that would typically send shockwaves across global financial markets, Israel launched a strategic offensive on Iranian military and nuclear sites late last week. The operation was reportedly aimed at curbing Iran’s nuclear ambitions, stoking fears of a broader regional conflict. However, despite the severity of the situation, investor sentiment appeared more resilient than expected, with equities inching higher and commodity-linked currencies like the Kiwi posting gains.

The resilience in risky assets suggests that investors are positioning themselves ahead of key macroeconomic events rather than solely reacting to geopolitical developments. The US Dollar Index (DXY) slipped toward the 98.00 level after early session strength, reflecting a rotation out of the safe-haven Greenback and into higher-yielding currencies.

Looking ahead, attention turns sharply to the US Federal Reserve’s rate decision this Wednesday. While the central bank is widely expected to hold rates steady in the 4.25%–4.50% range, the focus will be on Fed Chair Jerome Powell’s tone during the post-decision press conference and the updated "dot plot" projection.

According to the CME FedWatch Tool, markets are currently pricing in a high probability of a pause in the Fed’s tightening campaign. However, Powell’s guidance and the dot plot will likely offer vital clues on whether rate cuts are still on the table later this year, or if the Fed will stay the course amid sticky inflation.

Another potential market mover arrives just a day prior, with the release of US retail sales data for May. Consensus expectations suggest a 0.7% decline in consumer spending, a critical metric for gauging the resilience of the US economy. Any material deviation from expectations could further shift sentiment and reshape positioning in FX markets, especially for pairs like NZD/USD.

Technical Analysis

From a technical standpoint, the NZD/USD pair has successfully bounced off a short-term bullish trendline, showing strong intraday momentum. After a period of bearish consolidation, signs of recovery emerged as the Relative Strength Index (RSI) rebounded from oversold territory, suggesting that the downside correction may be losing steam.

The 50-day Exponential Moving Average (EMA50), which had acted as dynamic resistance in recent weeks, is being tested once again. A decisive break above this level could pave the way for further gains toward the next key resistance zone near 0.6160 — a level that aligns with previous price action congestion and psychological resistance.

If momentum continues and broader market sentiment remains constructive, bulls may aim for this upside target in the short term. However, any dovish surprise from the Fed or an unexpected intensification in geopolitical risk could quickly shift the tide.

TRADE RECOMMENDATION

BUY NZDUSD

ENTRY PRICE: 0.6050

STOP LOSS: 0.6000

TAKE PROFIT: 0.6160

Risk Warnings and Disclaimers

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Alan

Commodity

Summary:

The recent intensification of the conflict between Israel and Iran has propelled oil prices upward. Iran has even hinted at the possibility of closing the Strait of Hormuz, which has further exacerbated market fears of supply chain disruptions.

BUY WTI

Close Time

CLOSED

70.934

Entry Price

77.900

68.400

59.315 -0.494 -0.83%

253.4

Pips

Loss

68.400

68.392

Exit Price

70.934

Entry Price

77.900

Fundamentals

The recent Israeli airstrikes on Iranian nuclear facilities and military targets have directly triggered a surge in safe-haven buying in the crude oil market, driving up prices significantly. The severity of this conflict far exceeds previous incidents—the casualties among Iran’s Revolutionary Guard Corps and nuclear scientists, as well as the shutdown of production platforms at the South Pars gas field following Israeli strikes, have all intensified market concerns over potential disruptions to the Middle East’s crude oil supply chain.

Meanwhile, Iranian officials have indicated that they are seriously considering closing the Strait of Hormuz. As a crucial conduit for global crude oil transportation, approximately one-third of the world’s seaborne crude oil trade passes through the Strait. JPMorgan and other institutions have priced the risk of a closure as a potential oil price shock to $120-$130 per barrel. Although the market currently assesses the probability of a complete closure at only 7%, safe-haven funds have been pouring into crude oil and other commodity markets to hedge against the risk of future supply disruptions.

Additionally, the U.S. and European Strategic Petroleum Reserves (SPR) have been continuously released over the past few months, but the scale of releases has significantly diminished, and expectations for restocking or partial replenishment are beginning to emerge. Reports from Morgan Stanley and other investment banks suggest that if the Middle East conflict escalates further and affects maritime transportation, global inventories would need to allocate an additional 1 million barrels per day to cover the supply gap. This supply deficit is expected to push up oil prices in the short term. On the demand side, China’s “Warm Europe” policy and India’s early entry into the monsoon season, which increases transportation fuel demand, are also providing strong support.

Overall, concerns over supply chain security and the seasonal upturn in demand are giving crude oil bulls a clear advantage at this critical juncture.

Technical Analysis

From the daily chart, WTI crude oil surged by over 10% on June 13 (reaching a high of $74.68), breaking through the key psychological level of $70.00 and the previous resistance at $71.97. This has opened up further upside potential, with the next target likely to test the resistance at $79.35.

In terms of moving averages, the MA20 has crossed above the MA60 to form a bullish golden cross, indicating strong upward momentum and increasing the likelihood of further gains.

Traders are advised to adapt a strategy of buying on dips.

Trading Recommendations

Trading Direction: Long

Entry Price: 70.50

Target Price: 77.90

Stop Loss: 68.40

Valid Until: June 30, 2025, 23:00:00

Support: 69.42/67.77

Resistance: 73.44/74.68

Risk Warnings and Disclaimers

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Manuel

Forex

Economic

Summary:

The proximity of these moving averages, combined with a slight rebound from this support zone, suggests the potential for a bullish reversal in the short term.

BUY GBPUSD

Close Time

CLOSED

1.35500

Entry Price

1.35950

1.35100

1.33273 -0.00039 -0.03%

45.0

Pips

Profit

1.35100

1.35951

Exit Price

1.35500

Entry Price

1.35950

Tensions in the Middle East continue to escalate, with Iran reportedly informing mediators from Qatar and Oman that it “will not negotiate under attack,” according to a source familiar with the ongoing dialogue. This comes amid intensified military exchanges between Iran and Israel. The same source denied recent reports suggesting that Tehran had reached out to Qatar and Oman with a proposal to involve the U.S. in brokering a ceasefire or resuming nuclear talks, stating such claims are “inaccurate.”

Meanwhile, U.S. President Donald Trump affirmed Washington’s unwavering support for Israel, stating on Sunday that although he hopes for a resolution between Iran and Israel, “they’ll have to fight it out.” Trump also reportedly rejected a proposed Israeli plan to target Iran’s Supreme Leader Ayatollah Ali Khamenei, emphasizing his preference to keep the U.S. from being drawn directly into the conflict—for now.

On the economic front, Thursday’s release of the U.S. Producer Price Index (PPI) for May added to signs of cooling inflation. Headline PPI rose 2.6% year-over-year, matching analysts’ expectations and slightly surpassing April’s 2.5%. More notably, core PPI—which excludes volatile food and energy prices—eased to 3.0% from the previous month’s 3.2%, reinforcing the narrative that inflationary pressures are beginning to moderate.

Following a weaker-than-expected Consumer Price Index (CPI) reading earlier in the week, the PPI data has fueled market expectations that the Federal Reserve may be positioning for a potential rate cut as soon as September. A softer inflation outlook typically benefits gold, as the precious metal becomes more attractive in a low-rate environment due to its non-yielding nature.

Across the Atlantic, the latest figures from the UK’s Office for National Statistics (ONS) revealed a sharper-than-expected contraction in economic activity. The British economy shrank by 0.3% in April, missing the consensus forecast of a 0.1% decline. This downturn follows a 0.2% GDP expansion in March. According to the ONS, the contraction was largely driven by a significant drop in exports to the United States, linked to the recent implementation of U.S. trade tariffs. "Following four consecutive monthly increases, April saw the largest recorded monthly fall in goods exports to the U.S., with broad-based declines across most categories of goods," the agency reported.

This unexpected weakness may pressure the Bank of England (BoE) to reconsider its cautious approach to monetary policy. In May, the central bank cut interest rates by 25 basis points to 4.25%, signaling a "gradual and measured" stance on further easing. However, the recent data could prompt a more flexible shift if economic weakness persists. Bullish Momentum May Build from Key Moving Averages_1

Bullish Momentum May Build from Key Moving Averages_1

Technical analysis

The GBP/USD pair is currently finding support near the 1.3536 level, where both the 100-period and 200-period moving averages on the one-hour chart are closely aligned—at 1.3543 and 1.3546, respectively. The proximity of these moving averages, combined with a slight rebound from this support zone, suggests the potential for a bullish reversal in the short term. A sustained move higher could open the door to retest the next resistance zone near 1.3595.

The Relative Strength Index (RSI) stands at 43.61, a level that remains within neutral territory. However, if the pair continues to hold above the current support, the RSI may begin to trend higher, possibly confirming a new upward leg. Conversely, if GBP/USD breaks decisively below 1.3536, bearish momentum could gain traction, particularly if renewed demand for safe-haven assets like the U.S. dollar strengthens amid geopolitical uncertainty.

Trading Recommendations

Trading direction: Buy

Entry price: 1.3550

Target price: 1.3595

Stop loss: 1.3510

Validity: Jun 20, 2025 15:00:00

Risk Warnings and Disclaimers

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Eva Chen

Forex

Economic

Summary:

As Europe embraces a stronger euro and fiscal support, the era of monetary easing is drawing to a close. Meanwhile, New Zealand's BNZ Manufacturing Index has plunged to 47.5, re-entering contraction territory.

BUY EURNZD

Close Time

CLOSED

1.91149

Entry Price

1.96200

1.89000

2.01400 -0.00151 -0.07%

337.3

Pips

Profit

1.89000

1.94522

Exit Price

1.91149

Entry Price

1.96200

Fundamentals

Isabel Schnabel, a member of the European Central Bank's Executive Board, indicated on Thursday that the ECB's monetary easing cycle is "nearing its end," given the stable medium-term inflation outlook and improved macroeconomic conditions. She confidently projected an inflation rate of just 1.6% for 2026, attributing the temporary decline in inflation to base effects in energy prices and the euro's strength.

Schnabel painted a relatively optimistic picture of the eurozone's economic prospects, noting that despite heightened global trade tensions, eurozone economic growth remains "broadly stable." Private consumption continues to be a key pillar of support for the economy, while the manufacturing and construction sectors are also showing signs of recovery. She emphasized that "additional defense and infrastructure spending has offset the impact of tariffs on economic growth."

These structural shifts, combined with the euro's resilience and the strong performance of equity markets, reflect a "new European growth narrative," which could enhance the region's economic standing.

In contrast, New Zealand's BNZ Manufacturing Index has fallen to 47.5, re-entering contraction territory.

The latest data released on Friday showed that New Zealand's Manufacturing PMI for May plummeted to 47.5 from 53.3 in April, highlighting the pressures faced by the manufacturing sector, including declining orders, rising costs, and waning confidence.

The New Orders Index also dropped from 50.8 to 45.3, supporting the view that the economy's return to a growth trajectory is at risk of being disrupted.

The sharp decline in business confidence is also evident, with 64.5% of respondents providing negative assessments, up from 58% in April. This reflects the growing pessimism among manufacturers as they grapple with falling demand, weak forward orders, and subdued consumer spending. Rising input costs, ongoing economic uncertainty, and stalled investment plans have further exacerbated the pressure on businesses.

Previously, the market had anticipated steady progress for New Zealand's economy in 2025, but the latest PMI data suggests an increased risk that the GDP rebound seen in Q4 2024 and Q1 2025 could stall (bearish for the NZD).

Mixed Indicators Signal High Volatility with Expanding Trading Range_1

Technical Analysis

The EURNZD pair formed a head-and-shoulders top pattern between April 2 and 15 but failed to fully materialize the pattern's downside target below 1.8798. Instead, it recently broke above the consolidation range at 1.9163, signaling a potential shift in market sentiment.

The moving averages (MA 5, 10, 20, 50, 100, and 200) have all turned positive, generating a consistent "buy signal."

The Relative Strength Index (RSI 14) stands at 57.8, within the neutral-to-bullish range but not yet overbought, indicating ample upside potential.

The Moving Average Convergence Divergence (MACD) has slightly turned positive, supporting the continuation of upward momentum.

The Average Directional Index (ADX) is at 5, signaling a strong trend with a clear upward bias and potential for continuation.

The Average True Range (ATR) reflects high volatility and an expanding trading range.

The technical outlook for the asset is currently bullish. Traders are advised to wait for a suitable pullback to enter long positions, employing a trend-following strategy with stop-loss levels set based on support levels. If the pair breaks above the resistance level at 1.9238, it could open the door for the next round of bullish targets.