GBPUSD is testing a must-hold support today as the DXY sells off from critical resistance.
Will GBPUSD bulls hold the line to expose higher levels, or will sellers take control? Watch today’s video below for the details, including the key levels and scenarios to watch.
GBPUSD is bouncing from a significant level today at 1.3430. I have discussed this level at length in recent videos, identifying it as one to watch in June.
The 1.3430 area has served as resistance for GBPUSD since last September. It was also the April high just before a 300-pip pullback.
However, buyers managed to secure a daily and weekly close above 1.3430 on Friday. That flipped the level to new support this week.
In Wednesday’s Forex Mid-Week Analysis, I pointed out the relative aggressiveness of this pullback. That alone doesn’t mean 1.3430 support will fail, but it is a factor to consider.
I also discussed how the current chart demands respect. As traders, we should always respect what the chart shows today, not what we want to happen tomorrow.
With that in mind, 1.3430 is key support for GBPUSD as of this writing. That will remain true as long as the pair remains above the level on a daily closing basis.
It also means the 2025 uptrend is intact. As long as GBPUSD is carving higher highs and lows and holding above 1.3430, the door remains open to resistance at levels like 1.3630.
On the other hand, a daily and weekly close below 1.3430 would confirm a buy-side fakeout. That would be bearish for the pound and expose downside targets, such as 1.3200.
The DXY will also need to reclaim the 100.20 region for GBPUSD to turn bearish. We don’t have confirmation of either scenario at this time, but we’ll see how Thursday’s session closes.
