GBPUSD is failing at its 1.3140 range lows, but one area promises to attract significant demand.
Watch today’s video for the details, including a complete trade plan for GBPUSD and DXY.
GBPUSD has been sideways for months. The price is losing that range floor and the November open, so I’m treating 1.3130–1.3140 as resistance if we get a daily close below it.
Support comes in at 1.2940–1.2950. That area aligns with the March POC and the April VAL, making it one to watch as support.
There’s also a poor low around 1.2965. Think of that as a magnet that will likely be swept before a bottom can develop.
On the 4-hour chart, GBPUSD is trading inside an equidistant descending channel. As long as we’re below 1.3130–1.3140, the path of least resistance is down into 1.2965 and possibly 1.2940–1.2950.
One actionable spot to watch is an imbalance near 1.3081. That’s a buy-side single print that could get swept before GBPUSD tests the 1.2950 region.
Big picture, I like the idea of a retest of the 1.2950 confluence of support, but keep an eye on 1.3081 in case we get some relief first.
Now for the DXY. The index broke out of a descending channel and is holding above the November open at 99.75. That’s your key support this month.
The first resistance is 100.25. However, the more significant level for me is 100.80, which is a monthly level from 2023 and the top of a rising channel on the 4-hour chart.
There are single prints just below and above that area around 100.60, which could serve as a “magnet” for the US dollar on the way up.
Above 99.75, the DXY has room to move into 100.25 and then 100.60–100.80, with a possible sweep toward 100.93.
If DXY tags 100.80 while GBPUSD hits the channel bottom, I’ll look for price action to confirm a bottom.
Until then, GBPUSD remains a sell-the-rally market below 1.3130–1.3140.
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