These key levels could determine the next moves for GBPUSD.
Watch today’s video to see how I’m trading GBPUSD and get the latest on the DXY.
After closing last week above 1.3130/40, GBPUSD looked relatively bullish to start this week.
So far, buyers have defended that zone well. The pair dipped into the 1.3130/40 support area a couple of times this week, and each time it was defended.
As long as the pound is above that area on the high time frames, I’ll remain neutral.
Additionally, the DXY held below its November open this week. That was the line in the sand for the US dollar that I discussed at length in the Weekly Forex Forecast.
The dollar index has also broken below 99.40 and swept the two sell-side inefficiencies at 99.29 and 99.37.
However, dollar bulls have since reclaimed 99.40, a sign that the DXY rally may not be over just yet.
For now, I’m on the sideline, but a DXY reclaim of 99.75 and GBPUSD below 1.3130 with conviction could be interesting.
