- GBP / USD cut a portion of its intraday gains to confluence resistance at 1.3520-25.
- The mixed media setup warrants some caution before placing new directional bets.
The pair GBP/USD it traded on a positive bias for the middle of the European session, although it has trimmed a portion of its initial gains. The pair was last seen hovering below the key psychological level of 1.3500, rising around 0.30% for the day.
The intraday rally stalled near the confluence resistance of 1.3520-25, which comprises the 50 hourly SMA and the 23.6% Fibonacci level of the strong upward move of 1.3188-1.3620. The mentioned region should now act as a key hub for intraday traders.
Meanwhile, the recent pullback from near the yearly highs around the 1.3620-25 region constitutes the formation of a bearish double top chart pattern. That said, the appearance of some falling buying warrants some caution for bearish traders.
Also, the oscillators on the daily chart, although they have been losing positive momentum, are still in bullish territory. This makes it more prudent to wait for some subsequent sales before positioning for a significant drop.
On the upside, the 1.3520-25 confluence region could continue to act as immediate resistance, above which the GBP / USD pair could rise back to the 1.3575-80 area. However, the bulls could still wait for a sustained move past the 1.3600 mark before placing new bets.
1 hour chart
Technical levels
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