GBPUSD → False break of flat support

27 oct. 2023

GBPUSD is in the sideways range against the background of the descending price channel. The bearish trend may contribute to the pricing of the currency pair



The DXY due to uncertainty on the background of monetary policy stands still and forms a sideways range. If the dollar price falls from the resistance, in that case GBPUSD will react with a bullish maneuver and head towards 1.2272, breaking the trend resistance. But amid the news, the dollar index may continue its trend as Powell is not ready to cut rates yet. In this case, the analyzed currency pair may break the support and head towards 1.1821.
Still, in the long term there is a chance for strengthening of GBPUSD, locally, a signal in the form of a false breakdown of 1.2117 and price consolidation above the level may serve to this.

Support levels: 1.2117
Resistance levels: trend line, 1.2272

I assume that now there is a high chance of a rebound from the support. The currency pair may strengthen to 1.2272 and test the flat resistance.

Regards R. Linda!