Gbpusd Steady As Traders Await Data

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Gbpusd Steady As Traders Await Data

Gbp/Usd Steady Near 1.2950, Traders Await Us Data

GBP/USD is exchanging hands around the 1.2950 handle on Tuesday and has already reversed a little bit from 1.2995. It is important to note that the 1.2995 level was one of the highest this year (2024), which means the recent sales are nothing but technical corrections.

The recent correction in the GBP/USD is driven by an uptick in the US Dollar as the market players are now waiting for Fedspeak and the US retail sales data.

Gbp/Usd H4 Chart Shows Strong Bullish Momentum

On the H4 chart, the RSI indicator is still printing above 70, even though the pair has retreated a little bit. This is a sign that the GBP/USD pair is still in the overbought area, and more selling is expected.

The GBP/USD pair is trading inside a regression channel with the upper limit at 1.3000. So, while we still trade below that point, the majority of the buyers will likely wait on the sidelines.

On the way down, the nearest support is around 1.2950, which is an important static level. After that, the next stop for the GBP/USD sellers will be 1.2900, which is a static level and psychological level. Next up is the 1.2830 handle, which is also the mid-point of the trading channel.

If the Pound/Dollar pair can manage to cross the 1.3000 and turn it into support, it will open the doors to 1.3040 and then the 1.3100 handle.

For now, the GBP/USD is in a consolidation phase with a high chance of technical correction from yearly highs. Once the pair is out of the overbought conditions, we will likely see another attempt to target the 1.3000 handle.

Last week's rally in the GBP/USD was mostly due to the selling pressure on the USD after the release of weak inflation data. This week, the focus has not shifted to the upcoming US retail sales data along with a little bit of technical play.

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