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GBP/USD Near the 1.2777 Resistance

June 9, 2020 at 5:53 by Dorin Rosu

The Great Britain pound versus the US dollar currency pair seems to be willing to continue towards the north, but should the buyers fear any intervention from the sellers’ side?

Long-term perspective

The rally that started from the 1.1409 low managed to climb to the 1.2647 peak before falling towards the key 1.2092 level to confirm it as support, which triggered the continuation of the bullish movement, thus allowing the price to almost touching the 1.2777 intermediary resistance level.

Given the second rally, the bulls need some time to regroup for the next one. This can take the shape of the scenario in which the price begins a consolidation phase limited by 1.2777 as resistance and 1.2647 (or 1.2643) as support. Noteworthy is that the possible support may trigger further advancement after its first confirmation. The bulls will eye the 1.3000 intermediary resistance, which also goes as a psychological level.

Another possible scenario is the one in which the price retraces all the way to 1.2514. Even if this may trigger a strong rise, given the importance of the level, some market participants may amend the fact that the price went beneath the 1.2643 peak, thus putting the movement towards 1.2777 — which would play as the first target — at risk. Only if the price falls underneath 1.2514, then the bears could stretch until 1.2306.

Short-term perspective

The appreciation that started from 1.2075 extended until 1.2755, a hair away from the important resistance level of 1.2783.

In the light of the strong momentum, it is possible to see the price getting above 1.2783 and consolidating above it, limited, of course, by the 1.2876 intermediary resistance level.

However, the consolidation may also take place while 1.2783 and 1.2612 serve as boundaries.

Only if 1.2612 does not hold as support, the bears may go for 1.2525. But that area may be well guarded by the bulls, who could send the price back above 1.2612. But if 1.2525 fails, then the bears would target 1.2432 and 1.2282.

Levels to keep an eye on:

D1: 1.2777 1.3000 1.2514 1.2306 and the peak of 1.2647
H4: 1.2783 1.2876 1.2612 1.2525 1.2432 1.2282

If you have any questions, comments, or opinions regarding the US Dollar, feel free to post them using the commentary form below.

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