GBP – The British pound has stabilized again, testing trendline resistance

The pound continued its upward trend against the dollar from last Friday, breaking through the 1.35 level on Monday, reaching a high of 1.3530. The technical chart shows a descending trendline extending from the January 27 high of 1.3867 at 1.3520. Therefore, close attention is needed; a break above this level this week could trigger a stronger upward extension, potentially reaching the May high of 1.3657 and then 1.38, with a key target of 1.40. Support levels are seen at the 25-day moving average of 1.3410 and 1.33, with stronger support at 1.3210 and the June 24 low of 1.3139. Overall, if the pound can hold above the 1.35 resistance level this week, it could challenge 1.354, 1.361, and even 1.37. Conversely, a failure to hold above this level would likely lead to further downward testing of support at 1.341 and 1.338.

Forecast range
Resistance 1.3500/20** - 1.3657 – 1.3800 – 1.4000*
Support 1.3410 – 1.3300 - 1.3210 – 1.3139

Key Focus:
Thursday
UK June/Q2 GDP (14:00)
UK June Industrial Production/Manufacturing Production (14:00)
UK June Trade Balance (14:00)

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