Pound Sterling has seen a slight rise, with no significant news over the weekend and no important data released today. The market is largely dismissing the possibility of a rate cut by the Bank of England at its June 19 meeting, and only minor surveys are expected this week. The pound was trading just under 1.36 last night, reaching its highest level since early 2022. There’s minor resistance at 1.3595, which might limit any short-term gains, but the upward trend seems to be stable.

Technical Momentum

Indicators across different time frames show limited chances for corrections, with strong support during minor dips. Key support levels are between 1.3545 and 1.3550, while resistance is seen at 1.3595/00, moving up to 1.3740/50. We are witnessing a consistent rise in Sterling’s value, especially since there hasn’t been major economic or political news recently. Traders appear unconcerned about a potential interest rate cut by the Bank of England, focusing instead on improving inflation and economic strength, which enhance the appeal of Sterling. Sterling’s quiet rise to just below 1.36 marks its highest level since early 2022. This recovery, particularly in calm trading conditions, reflects market confidence in its upward direction. However, we are reaching short-term resistance around 1.3595, where price movement has started to pause. It’s common to see slight hesitations near previous highs, especially when indicators show a lack of strong momentum for a downturn. Currently, we are experiencing a minor pullback rather than a significant decline. Support levels have been tested and have held around the 1.3545–1.3550 range, allowing us to track how far selling might push prices. If this support remains intact in subsequent tests, it’s unlikely we will see a reversal soon.

Market Structure

The ongoing upward trend is backed by solid momentum indicators. Oscillators are not yet showing overextension but suggest limited room for significant pullbacks in the near term. Any softness in prices is likely to be short-lived without major impacts—at least for now. If prices break through the 1.3600 resistance level, it could open the way to the next range, estimated around 1.3740–1.3750. From a market structure perspective, the clear support and resistance levels indicate a trend being adhered to by traders. This means we should maintain our directional bias until new evidence suggests otherwise. Neutral events, such as upcoming survey data, might not derail this pattern on their own. What stands out currently is the balance between anticipated volatility and actual price movement. The absence of large price swings indicates that traders are acting in expectation rather than response. The market has largely factored out the rate cut, and unless forecasts change significantly, we might see narrow trading conditions—this could also create opportunities for price breakouts as we approach the June decision. For now, we should focus on the sustainability of momentum. Movements below 1.3545 should be approached with caution, as that could disrupt the stability that has supported the pound since late May. Until then, a focus on continued stability with a tendency for upside movement appears to be a sound approach. Create your live VT Markets account and start trading now.

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