GBPUSD is approaching a 2021 key level that triggered a 600-pip selloff between March and April.
Will the level mark the top in what is now a 400-pip range?
Find out in today’s video, and get the latest on the US Dollar Index (DXY).
GBPUSD is breaking above 1.2710 today, a level that served as resistance for three consecutive days.
However, as mentioned in recent videos, 1.2710 was of little interest to me, given that a 1.2800 retest would “complete” the consolidation pattern since the start of 2023.
The 1.2800 region is the 2021 descending trend line that marked the GBPUSD top in March.
Last week, it was unclear if the pound could reach 1.2800 considering where the DXY was trading relative to its 2024 channel.
But the pound’s relative strength has been impressive.
Still, I think the 1.2800 resistance is the level to watch in the coming days.
A retest there would pique my interest for a short, but only if we get the price action needed to justify the risk.
Until then, I’ll continue monitoring other trades and ideas, like the AUDNZD short idea from last week that hit our first take profit overnight.
If GBPUSD can close today above 1.2710, the level will flip to new support.
But I have no interest in trading the pair at current levels, as the 1.2800 range highs would offer the best risk-to-reward ratio.
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Your analysis is right on spot. Keep it up.