The focus in currency markets has shifted back towards the US Dollar after recent labour market figures surprised to the upside. With traders now pushing back expectations of Federal Reserve easing, demand for USD has improved significantly.
Sterling, meanwhile, is struggling to attract buyers. The lack of strong UK economic catalysts has left GBP vulnerable, especially after the pair slipped below the important 1.3400 support region.
Rather than chasing price lower, traders may look for a pullback into resistance before considering fresh shorts.
Execution Plan
Preferred Sell Area: 1.3375 – 1.3400
Protective Stop: 1.3460
First Target: 1.3300
Second Target: 1.3250
Extended Target: 1.3200
The bearish outlook remains valid while the market trades beneath the broken 1.3400 level, which may now act as resistance instead of support.
Sterling, meanwhile, is struggling to attract buyers. The lack of strong UK economic catalysts has left GBP vulnerable, especially after the pair slipped below the important 1.3400 support region.
Rather than chasing price lower, traders may look for a pullback into resistance before considering fresh shorts.
Execution Plan
Preferred Sell Area: 1.3375 – 1.3400
Protective Stop: 1.3460
First Target: 1.3300
Second Target: 1.3250
Extended Target: 1.3200
The bearish outlook remains valid while the market trades beneath the broken 1.3400 level, which may now act as resistance instead of support.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.