British Pound Forecast: GBP/USD Bulls Defend Yearly Open Support

united_kingdom_05
NA-meet-our-team-Michael-Boutros-125x125
By :  ,  Sr. Technical Strategist

British Pound Technical Forecast: GBP/USD Weekly Trade Levels

  • British Pound plunges 2.91% off July / yearly high- set to snap four-week losing steak
  • GBP/USD rebounds off yearly-open support / August opening-range breakout imminent
  • Resistance 1.2934, 1.30, 1.3091-1.3156 – Support 1.2731/73, 1.2584/95, 1.2493

The British Pound is poised to snap a four-week losing streak after plunging more than 2.9% off fresh yearly highs. The August opening-range is set just above a key pivot zone we’ve been tracking for weeks now around the 2024 yearly open – looking for a possible breakout to offer  guidance with the broader technical outlook still constructive while within the October uptrend. Battle lines drawn on the GBP/USD weekly technical chart.

Review my latest Weekly Strategy Webinar for an in-depth breakdown of this Sterling setup and more. Join live on Monday’s at 8:30am EST.

British Pound Price Chart – GBP/USD Weekly

British Pound Price Chart GBPU USD Weekly Sterling vs US Dollar Trade Outlook GBPUSD Technical Forec

Chart Prepared by Michael Boutros, Sr. Technical Strategist; GBP/USD on TradingView

Technical Outlook: In last month’s British Pound Weekly Forecast we noted that a, “reversal off fresh yearly highs takes GBP/USD back into support at former resistance- looking for a reaction here with the immediate short-bias vulnerable while above 1.2773.” Price has been testing this support for the past three-weeks with Sterling set to snap a four-week losing streak as of Thursday.

The key support zone in focus now shifts to 1.2731/73- a region defined by the objective 2024 yearly-open and the February 2019 swing low. This level is backed by the 61.8% Fibonacci retracement of the yearly range / 52-week moving average at 1.2584/94- a break / close below this threshold would threaten a larger setback towards the yearly low-week close (LWC) at 1.2494 and broader bullish invalidation at 1.2397-1.2422.

Weekly resistance is eye with the yearly high-week close (HWC) at 1.2934- a breach / weekly close above this threshold is needed to suggest a more significant low was registered last week and keep the focus on a stretch towards the 1.30-handle. Next major resistance hurdles eyed at the 2023 HWC / 100% extension at 1.3091-1.3156 and the 2021 LWC at 1.3273- both levels of interest for possible topside exhaustion IF reached.

Get our exclusive guide to GBP/USD trading in H2 2024

Bottom line: The British Pound has been testing a major support pivot at the yearly open for the past three-weeks and the risk remains for possible inflection off this zone. The August opening-range is set, and the immediate focus is on a breakout of the 1.2670-1.2860 range for guidance. From a trading standpoint, losses would need to be limited to 1.2584 IF price is heading higher on this stretch with a close above 1.2934 needed to fuel the next move. Review my latest British Pound Short-term Outlook for a closer look at the near-term GBP/USD technical trade levels.

GBP/USD Economic Data Releases

 UK US Economic Calendar - GBP USD Key Data Releases - GBPUSD Technical Forecast - 8-15-2024

Economic Calendar - latest economic developments and upcoming event risk.

Active Weekly Technical Charts

--- Written by Michael Boutros, Sr Technical Strategist with FOREX.com

Follow Michael on X @MBForex

Open an account in minutes

Experience award-winning platforms with fast and secure execution.

Web Trader platform

Our sophisticated web-based platform is packed with features.
Economic Calendar