GBPUSD is breaking out, but the upcoming volatility may have something to say about that.
Watch today’s video for the key levels to watch as we approach the US election day volatility.
GBPUSD is attempting a breakout on U.S. election day following months of trending lower.
Descending broadening wedges like this often act as bottoming patterns, signaling potential reversals.
However, traders should note that 1.3050 remains key resistance for GBPUSD.
The pair would need to break above this level on higher time frames to turn it into support.
With the election today, expect intense volatility for the U.S. dollar over the next 24 hours—a good reason to avoid the markets temporarily.
Another factor to consider is the DXY reclaiming 102.60 in October, which could keep the U.S. dollar strong through the remainder of 2024.
Currently, the DXY is approaching key support at 103.20, with 102.60 serving as a must-hold level for dollar bulls.
So, while GBPUSD appears bullish today, traders should stay cautious given the potential for election-driven volatility.
Keep an eye on the 1.3050 resistance level for GBPUSD and the 103.20 support level for the DXY.
