Last week’s low GBP/USD flirted with the 1.19,000 level on Wednesday, but buying suddenly exploded when US Federal Reserve Chairman Powell admitted in a speech that the US Federal Reserve must take into account a weakening US economy. GBP/USD reached new medium-term highs at after breaking through the technically perceived resistance of the August values, and traders are now considering the possibility of higher price movements. Advertisement Test your technical skills now! OPEN FREE DEMO ACCOUNT GBP/USD closed weekend near 1.22950; This is quite a positive achievement considering that the currency pair was close to 1.03950 on September 26. The increase comes as the British government grapples with political chaos within its ruling party and the US Federal Reserve has confirmed it is considering a more robust interest rate policy. An almost 20% gain against GBP/USD since the end of September is quite a gain. GBP/USD flirted with the 1.19,000 level from last week’s low of , on Wednesday, but buying suddenly exploded when US Federal Reserve Chairman Powell admitted in a speech that the US Federal Reserve needs to consider a weakening US economy. Technical traders who bought GBP/USD at the bottom were likely rewarded as the pair closed Friday flirting with short-term highs again. Technical Letters Useful for Speculators GBP/USD A look at the six-month GBP/USD chart clearly shows that the currency pair oscillates between the relationships last seen on August 1, 2022. Although this is quite attractive, speculators who are technically tilted and these , who may want to consider what kind of behavioral sentiment they hope for in terms of bullish results, should look at the one-year charts. The 1.23000 resistance level looks important for short term traders as well as financial houses with longer term goals. The last continuous trade was at 1.23000 and above in late June of this year. The strong rally at GBP/USD is not a one-way rally, traders must remain realistic and use risk management. GBP/USD is most likely to raise the outlook for financial institutions. GBP/USD’s Lows from Last Week Remind Threats, Day Traders Pull Back Although GBP/USD rallied, day traders could still go lower, which could test over raised bets. Picking the right time when GBP/USD is strongly bought is dangerous and can lead to costly losses. GBP/USD fell to 1.19000 on Wednesday. After touching the 1.21200 level on Monday, GBP/USD fell to 1.19 00 a few hours later. On Tuesday, GBP/USD rallied again only to fall back to Monday’s lows. Wednesday’s lowest depths have not been seen since November 23rd. GBP/USD Weekly View: Speculative price range for GBP/USD is 1.20510-1.2 770 Support has been gradually increasing since November 3rd. Technically, it looks like GBP/USD may be poised to support higher levels. However, if there is an early sell-off in GBP/USD tomorrow and it continues on Tuesday, the 1.22000-1.21000 relationship could certainly see downward pressure. The upward momentum at GBP/USD is not guaranteed and some financial houses may think that profits were taken too quickly. If the 1.21000 level proves vulnerable, a test of 1.20500 could prove important. Investors may be inclined to look for a long position in GBP/USD if the lower support level becomes a major challenge if it remains on the upside. Economic conditions are difficult and Britain is certainly not putting on a celebratory parade announcing solid economic results. However, Forex trading has a lot to do with public sentiment. GBP/USD remains unsettled, but on a positive note, the pair’s ability to move consistently higher and return to levels not seen since early August is remarkable. If the current support levels prove to hold, GBP/USD could still see some buying action based on the perception that the 1.23000-1.2 000 levels are strong targets and reasonable value under the current conditions.

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