GBPUSD hit my 1.2900 target this week as the US Dollar Index reached a critical resistance zone.
Watch today’s video for the latest analysis on GBPUSD and where I think the US Dollar Index (DXY) is heading next.
GBPUSD reached my target on Wednesday after rejecting 1.3050.
If you followed the October 17th post, I was aiming for 1.2900 after the retest of 1.3050 resistance.
That move produced a solid 150-pip profit, but it could just be the beginning.
A significant headwind for GBPUSD bulls is the early-October failure at 1.3250.
This marked the first weekly break of structure since the uptrend started in April.
It also brought GBPUSD back into an ascending channel from January, hinting at a potential continuation toward 1.2820 and possibly 1.2700.
That said, support bounces are likely, and the DXY is testing the 104.00 to 104.50 resistance zone this week.
That area has been a target of mine since the US dollar reclaimed 102.60 on the 9th.
So, while we might see some short-term pound strength, I still prefer shorting strength below 1.3200.
Alternatively, a sustained break below 1.2890 could open the door to 1.2700.
