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Updated · continuumeconomics.com · Aug 6GBP/USD Holds Near 1.3460 as 1.3500 Caps Sterling's Next Upside Test
3 articles · Updated · continuumeconomics.com · Aug 6Summary
- GBP/USD traded cautiously around 1.3460, with rising daily indicators pointing to a test of 1.3500 resistance rather than an immediate breakout.
- Mixed weekly charts suggest gains should stay limited, with renewed selling interest expected below the 1.3558 July 15 monthly high.
- A close above 1.3558 would extend the late-June advance toward 1.3600, where longer-term signals indicate profit-taking could emerge.
- On the downside, 1.3400 remains the key support; a close below that level would strengthen bearish sentiment and shift focus to 1.3300.
- The cautious tone follows recent sterling gains against the dollar, helped by weak US labor data and expectations for lower US interest rates.
Insights
Is GBP/USD above 1.3450 a real vote against the dollar, or just a fragile bet on a weaker ADP payrolls report? If US labor data stay soft but unemployment barely moves, what really drives the next big GBP/USD breakout?