GBPUSD At Resistance: Do Not Buy Now

Tues 24th January 2023 : Daily Currency Strength Analysis

In Today’s Video we’re looking at Trading Setups in:

• USD Index
• GBPUSD
• NZDUSD

GBPUSD At Resistance: Do Not Buy Now

In today’s currency strength video we identified that the USD remains weak being W1 on the trend traders table and W2 on the day traders table. 

However is it the right time to short the USD?

When looking at the USD Index (an index of the value of the United States dollar relative to a basket of foreign currencies) we can see that the price is at the May 2022 lows at 101.25. 

This level could act as significant support for the USD, which could also signal to us that it is not the right time to continue to short the greenback.

We can witness this across the charts including GBPUSD which price sits at the previous weekly highs around 1.2400.

Technical Observations

• The GBP is S3 and USD is W3 on the day traders table.
• Price is bullish trading above the daily 200 moving average.
• The price is trading is currently at weekly resistance highs of 1.2400.
• If the price reverses here we could look for the price to retest the trendline support.
• A break o 1.2400 would see the market trade towards 1.2650.