Key Points

• 1.3400 and 1.3500 resistance region
• Ascending support
• Price above the 200 Moving Average

This is the fourth time the Pound has come so high to touch this key zone. The 1.3400 and 1.3500 resistance region proved too strong for the bulls back in August. The theory that the fourth retest of a resistance region will result in a breakout will be put to a test. A strong close above 1.3500 will pave way for the bulls to take on the 1.4225 handle.  Between 1.3500 and 1.4200 there are no visible obstacles hence price should move swiftly to challenge the April 2018 highs.

On the bottom side, the GBUSD price ascendance is being supported by the black line. This monthly support has been strong in holding up prices since March 2020. Now prices are seemingly over stretched away from the support line, a fall back to the support is likely to be on its way.

The Pound has successfully closed above the 200 Moving Average for the third time since 2014. The long-term downtrend is likely coming to an end and the 200 MA is turning upwards as prices trade above the line for a fifth straight week. On the down side, any subsequent drop below the 1.3310-1.3300 resistance-turned-support might now be regarded as a buying opportunity. As a result, this limits the bearish tendencies towards the 1.3260 support zone.

In the event of a strong bearish wave which breaks the above indicated support line, bears will target the 1.3200 round-figure mark. The corrective sweep could be extended to the 1.3000 region before the pair finally slumps to test the next major support around the 1.2500 zone.

Trends

Moving Average	Simple	Exponential
60	BUY	BUY
100	BUY	BUY
200	BUY	BUY

Pivot Points (Hourly)

Name	S3	S2	S1	Pivot	R1	R2	R3
GBPUSD	1.3311	1.3325	1.3350	1.3364	1.3388	1.3403	1.3427
EURUSD	1.1823	1.1836	1.1854	1.1867	1.1886	1.1898	1.1917
USDJPY	103.98	104.12	104.21	104.34	104.43	104.56	104.65

Pivot Points (Daily)

Name	S3	S2	S1	Pivot	R1	R2	R3
GBPUSD	1.3123	1.3193	1.3258	1.3328	1.3393	1.3463	1.3528
EURUSD	1.1685	1.1742	1.1792	1.1849	1.1898	1.1956	1.2005
USDJPY	102.96	103.32	103.93	104.29	104.90	105.26	105.87