The GBPUSD has reached new highs today and this year, hitting 1.3648. This surpasses the February 2022 high of 1.3644, shifting focus to the next important resistance level on the weekly chart. The key resistance level is at 1.37683, which is the 50% retracement from the drop between the 2014 high and the 2022 low. The previous January 2022 high almost touched this midpoint at 1.37479, highlighting its strength as a resistance point.

Support and Resistance Levels

Now, support levels are seen between 1.36158 and 1.36338, identified by swing highs from June 5. If the price stays above this range, the positive trend continues, and buyers remain in charge. However, if it falls below this support zone, momentum could reverse. So far, the pair has broken through a significant barrier not seen in over two years, marking a new yearly high. With price movements now in uncharted territory since early 2022, attention turns to the next challenge: the midpoint retracement of the long-term decline. The 1.37683 level serves as a technical marker—acting as resistance from the major decline between the 2014 highs and the 2022 lows. In January 2022, the market fell short here, stopping at 1.37479. This previous failure adds credibility to this resistance area. Having surpassed the earlier high around 1.3644, how the price behaves near 1.3768 will be crucial for decision-making as the quarter ends. Continued strength without rejection in that area could indicate that there’s no reason to sell into rallies, signaling balanced positioning.

Trading Strategies and Risks

For support, attention now shifts to the range of 1.36158 to 1.36338. These levels are based on prior swing highs where the price struggled to move higher earlier this month. Staying above this range keeps a positive short-term outlook and allows for small gains. However, if the price drops below this area, it may lead to profit-taking, especially among short-term traders. Traders using leverage might want to approach carefully if the price retreats toward these former highs acting as support, instead of jumping right back in. A more cautious strategy with tighter risk management around 1.3768 reduces the risk of false moves if the price fails again. Any pullback from this zone should be monitored closely for signs of lost momentum. If momentum weakens and volume decreases while the price stays below 1.3768, it would indicate a second failure at this level, providing crucial behavioral insights. Regarding volatility, this recent rise has been orderly. The intraday charts show a structured approach, rewarding trend-following strategies that viewed the breakout above 1.3644 as a continuation. We’ll keep an eye on whether activity around 1.368-1.370 increases. If positioning becomes too lopsided toward further gains without a break, typical fading behavior near major Fibonacci retracement levels could emerge again. This might reflect the January 2022 pattern but with different underlying factors now. Therefore, how the price reacts near the midpoint is significant—not just as a symbol, but because past rallies have struggled for momentum here. Patience is likely more advantageous than rushing in. Create your live VT Markets account and start trading now.

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