The British pound has shown some signs of bouncing for a bigger move, as we were getting close to a big support level. This is a pair that features two relatively firm currencies at the moment, so this could remain rangebound.
GBP/USD
The British pound has shown itself to be somewhat resilient during the trading session as the market drifted into a basically 3-day weekend in the United States, as Juneteenth would be celebrated. That being said, we were also at the bottom of a significant range, with the 1.32 level being a massive support level.
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Ultimately, I like the idea of maybe playing a short-term rally here, understanding that any signs of exhaustion would be a potential selling opportunity. I think you have to look at this as a market that is currently trying to navigate the interest rate situation, but when you zoom way out, you can see that this 1.32 level is an area that's been important, and I think you would have to assume that some type of reaction makes sense.
Technical Resistance and Range Dynamics
Again, I think the 1.33 level is resistance followed by the 200-day EMA. I've got no interest in getting into a longer-term trade at the moment. I think just a short-term bounce makes sense.
Keep in mind it was Juneteenth in the United States, and that means that about half the day was pretty quiet. And then I do believe ultimately, though, we are looking at a pair that is just staying within the same range it's been in for well over a year.
We're getting close to the bottom of that range, so range-bound longer-term swings make sense. I think a short-term bounce for those of you who are a little short-term in your thinking probably makes sense as well.
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