Pound Sterling shows signs of continued strength, with a new target of 1.3500. Recent trends indicate trading may settle between 1.3375 and 1.3450, after closing slightly lower at 1.3418. In the next week or two, the indicators still favor a rise towards 1.3500. If it drops below 1.3340, it would suggest the upward trend is over.

Forward-Looking Statements

Forward-looking statements involve risks and uncertainties. It’s crucial to conduct thorough personal research before investing. The information in this article is not a recommendation for buying or selling assets and cannot guarantee accuracy or timeliness. The views in this article are those of the authors and may not represent other policies. There are no personalized recommendations, and any risks from mistakes or misinterpretations fall on the reader. This article does not provide investment advice. Currently, the British pound is still under upward pressure, closing slightly lower at 1.3418 but remaining within its support and resistance levels. Recent technical signals indicate that while momentum may be cooling, it is not completely spent. A rise to 1.3500 remains realistic if the current trend continues.

Technical Analysis

We are keeping an eye on 1.3340. This key level is vital—if it falls below this point, the recent upward movement will likely fail. If it stays above, previous gains are still in play. A drop below would shift focus to potential downturns. Derivatives traders should pay attention to the tight range between 1.3375 and 1.3450. This area often signals a buildup before bigger price movements. Tighter ranges can store energy, and when volatility starts to increase, we may see directionality shift. If this happens while key levels hold, upside potential becomes more attractive. Mid-term indicators, which filter out short-term noise, still show an upward trend. This strengthens the case that bulls maintain control, although their position feels weaker than before. External data shifts and positioning trends, monitored through futures’ open interest and implied volatility, may contribute to this fragility. Traders should focus on the strength of the current move rather than just the price level. Higher highs do not always indicate strength—they must be viewed in context. Maclean, who has reviewed this price movement closely, points out that sellers enter at expected levels while buyers support dips. This creates tactical opportunities in the short term, though less so strategically. Timing is crucial. Traders looking for intraday setups should favor breakout or reversal points around the key range. Those with longer positions should be aware that reaching 1.3500 may face resistance due to option expiry flows, not necessarily broader market trends. Therefore, it’s important to evaluate each level on its own, not just based on continuation chances. Finally, we also monitor the central banks’ communications and local economic data. These often lag behind price movements but can eventually lead to reevaluating positions. Harris has noted that any shifts in expected inflation paths or rate decisions could undermine technical signals, making it necessary to stay updated with scheduled data releases. In this current market, the potential for opportunity exists, but so do the risks. Create your live VT Markets account and start trading now.

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