Pound Sterling (GBP) may test 1.3580, but a pullback could happen afterward. Right now, GBP shows mixed signals, with a possible trading range between 1.3420 and 1.3655. Recently, GBP fell to 1.3373 but then jumped back up to close at 1.3527. This sharp rise seems a bit overstretched, but GBP could still touch 1.3580 briefly. Major resistance at 1.3655 is not expected to appear soon, while support levels sit at 1.3525 and 1.3485.

Past Analysis And Market Conditions

In previous analyses, GBP’s momentum seemed to grow, but reaching 1.3335 might take a little longer. GBP declined and then quickly rebounded, breaking the strong resistance at 1.3520. Despite the recent ups and downs, the market is likely to stay within the range of 1.3420 and 1.3655 for now. Investing involves risks and uncertainties, and mistakes can happen. It’s essential to research thoroughly before making investment decisions, as market conditions can change. Investing in open markets can lead to losses and emotional distress. The recent rise in Sterling, especially after dropping below 1.3380 and closing above 1.3520, reflects short-term excitement. While this bounce seems strong, especially after breaking past key resistance, it doesn’t confirm a new upward trend yet. Instead, it likely shows a shift in sentiment within the existing range. Support is forming around 1.3485, which held well during the recent pullback before the latest upward move. If prices drift below this level in upcoming sessions, it could weaken the recent strength, especially with 1.3420 not far behind. Given the current momentum, reaching that lower level is possible, particularly if short-term traders choose to exit early this week. Price movements may become more reactive than directional.

Potential Price Movement And Strategies

Conversely, the area around 1.3580 may still draw interest. The quick rebound that brought Sterling up from its lows might encourage momentum strategies aiming for that target. However, pushing past 1.3580 convincingly remains uncertain. Past reversals suggest these spikes often reflect noise instead of solid changes in positioning. The ceiling at 1.3655, lasting weeks, probably won’t be reached unless there’s a significant shift in institutional flow or an unexpected macro catalyst. The current price range likely guides expectations for now, and we should be ready for mean-reverting patterns or short cycles in the next trading sessions. From our perspective, volatility combined with sentiment-driven moves can provide opportunities for clear entry and exit points. Recent movements have reflected rotation rather than a change in macro structure. Short-term strategies can thrive in this environment if grounded in established support and resistance zones. Gradually entering trades near these areas and adapting to new data may be more effective than chasing prices during sudden intraday moves. Timing is something traders might want to adjust. Momentum doesn’t always mean continuation here, as price swings often reflect narrative shifts rather than stable macro views. Allowing prices to confirm bias by holding levels, rather than reacting to initial pushes, can enhance trade selection. For example, the overextension above 1.3525 already occurred but lacked significant follow-through. Overall, we will keep an eye on where short-term volatility settles, especially as the market prepares for upcoming economic data. If intraday volatility does not last, flows may slow down again near the upper side of the 1.36 range, prompting traders to consider mean reversion strategies using previously established markers for reference. Create your live VT Markets account and start trading now.

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