Cable has just halted a downswing around a possible technical support zone.

Will GBP/USD find enough demand at the extent to increase a long-term trend?

We’re checkin’ out the each day chart!

GBP/USD 1-hour Forex Chart by TradingView

In case you missed our last FX Weekly Recap, you must know that the U.S. dollar got a whole lot of support from shifting Fed rate of interest expectations and a possible Trump presidency resulting in higher inflation within the U.S.

The British pound wasn’t a slacker either, because it maintained its gains against “riskier” FX counterparts after a BOE member hinted at higher terminal rates and a more gradual approach to easing policies.

Do not forget that directional biases and volatility conditions in market price are typically driven by fundamentals. For those who haven’t yet done your homework on the U.S. dollar and the British pound, it’s time to examine out the economic calendar and stay updated on each day fundamental news!

GBP/USD, which bounced lower from the 1.3400 resistance, traded in a downtrend before reaching its current 1.2900 levels.

Will this week’s themes extend GBP/USD’s longer-term uptrend?

We’re taking a better have a look at 1.2900, which will not be removed from the each day chart’s 100 SMA and a trend line support that’s been around since April.

Bullish candlesticks and sustained trading above 1.2950 set GBP/USD for a possible bounce from the 61.8% Fibonacci retracement of October’s downswing.

Alternatively, GBP/USD may extend its downswing and find more sustained bullish pressure across the 1.2800 psychological level, S2 Pivot Point support, and 200 SMA area as a substitute.

But when GBP/USD starts poppin’ up more bearish candlesticks, or if the pair breaks below and consistently trades under the trend line support we’ve marked, then the pair may head for previous inflection points like 1.2675 or 1.2550.

Whichever bias you find yourself trading, ensure you’re updated on the potential catalysts which will affect GBP/USD’s prices!