GBPUSD lost a significant level last week, but what does that mean for this week?
In today’s video, get the latest GBPUSD key levels and trade ideas, plus an update on the US Dollar Index (DXY).
GBPUSD finished last week below some critical levels that suggest a potential bearish continuation this month.
In the latest Weekly Forex Forecast, I discussed how a weekly close below 1.3140 would confirm a high time frame fakeout for GBPUSD.
Although last week’s close barely hinted at that breakdown, the pound remains below key levels like 1.3250.
Even if bulls attempt to push the pair higher this week, GBPUSD is still vulnerable to lower prices.
Last week’s close below 1.3250 marked the first time GBPUSD has lost a weekly pivot since its rally began in April, signaling a potential shift lower.
That alone points to a possible decline, but timing remains crucial.
Additionally, with the DXY still below 102.60, US dollar longs remain risky.
It will take a sustained break above 102.60 on the DXY to confirm a bullish USD move toward 104.00.
Until then, the USD index is stuck between 102.60 resistance and 102.00 support.
