GBPUSD Technical Analysis Short term opportunities inside the long term range

On the daily chart, we can see that GBPUSD has been consolidating between the 1.26 and the 1.28 resistance as the lack of a clear divergence between the two central banks has led to a rangebound price action. There’s not much to glean from this timeframe, so we need to zoom in to find some more clarity.

On the 4 hour chart, we can see that the pair sold off in the APAC session with some risk off flows but the price got a bit overstretched as depicted by the distance from the blue 8 . In such instances, we can generally see a pullback into the moving average or some consolidation before the next move.

Given the rejection from the 1.28 resistance, the sellers might be in control at the moment and the natural target should be the 1.26 support. On the 1 hour chart, we can see that we have a good resistance zone around the 1.2710 level where we can find the with the downward , the 61.8% level and the red 21 moving average.

This is where we can expect the sellers to step in with a defined risk above the trendline to target the 1.26 support. The buyers, on the other hand, will want to see the price breaking higher to invalidate the bearish setup and position for a rally into the 1.28 resistance. , we have the UK labour market report on the agenda and later in the day all eyes will be on Fed's Waller as the market will be eager to see if he decides to pushback against the aggressive rate cuts expectations.

Tomorrow, we will get the UK CPI data while later in the day we will see the latest US Retail Sales report. On Thursday, we will get the US Jobless Claims figures while on Friday we conclude the week with the UK Retail Sales and the University of Michigan Consumer Sentiment survey..