In the 4HR timeframe since December 21, 2023, GBPUSD has been moving within a defined range, oscillating between 1.28270 as the upper limit (resistance) and 1.26072 as the lower limit (support). At present, it appears that the support level has effectively halted the downward movement of prices and is now pushing the pair toward the resistance level. This suggests that traders are actively engaging within this established range.
As we anticipate high-impact news releases for both GBP and USD at 7:00 GMT and 15:00 GMT, respectively, trend traders are patiently awaiting a decisive break either above the resistance or below the support. This breakthrough could present an opportunity for traders to capitalize on potential market movements and secure profits in the form of pips.
Source : https://global.bdswiss.com/economic-calendar/
All eyes will be on the Michigan Consumer Sentiment Preliminary Index for January, with a forecasted value of 69. This index measures the overall level of a composite index based on surveyed consumers. If the actual figure surpasses the forecast, it is considered favorable for the United States Dollar (USD). It’s worth noting that by the time this news is released, Retail Sales MoM for December from the United Kingdom, forecasted at -0.3%, will have already been disclosed, potentially influencing market dynamics and setting the stage for the forthcoming USD news.
Given these circumstances, the crucial question emerges: Do you anticipate the support and resistance levels to be breached, potentially paving the way for the initiation of a new trend? The answer to this question holds significance for traders seeking to strategically navigate the GBP/USD market in response to evolving economic indicators and news releases.
