Cable is sitting on a major area of interest today!
Can GBP/USD still extend its uptrend?
Or are we looking at the start of a longer-term reversal for the pair?
GBP/USD Daily Forex Chart by TV
GBP/USD has been in a downtrend since mid-July when the pair got rejected at the 1.3140 inflection point.
The pair is now trading closer to 1.2500, which is just above the 200 SMA in the daily time frame.
Not only that, but 1.2500 is an area that had served as resistance in the last months of 2022 and support in the first half of 2023.
Last but not the least, GBP/USD’s current levels are not too far from the S2 of today’s Standard Pivot Points.
Will GBP/USD find enough support at the area to extend its uptrend?
A bounce from S2 may pull the pair back up to the 1.2700 psychological handle if not the 1.3000 previous high.
But if GBP/USD starts trading below the 200 SMA, then we could be looking at the start of a longer-term downtrend.
GBP/USD may even retest its 2023 lows near 1.1800 if not make new yearly lows.
Watch this one closely to see if GBP/USD traders make or break the pair’s uptrend in the next few days!