Hey traders! Time to break down what’s happening with GBP/USD (a.k.a. “Cable”) and how we can trade it tomorrow. Let’s look at key support & resistance, some juicy fundamentals, and where we might jump into the market.
Technical Analysis – Where’s Price Going?
Looking at the GBP/USD 30-minute chart, we can see some interesting moves:
✅ Support Zones:
- 1.2920 – 1.2900 – This is a key area where price previously bounced. Also, we’ve got the 200 EMA (blue line) chilling nearby, which often acts like a trampoline for price.
- 1.2880 – Asia Low (Unswept) – This level hasn’t been taken out yet, so price could dip here to grab liquidity before pushing up.
Resistance Zones:
- 1.2960 – 1.2980 – We just broke through this area, but watch out! If price struggles here, we could see a pullback before another push.
- 1.3000 (Psychological Level) – Round numbers are like catnip for traders, so expect some battle here if price reaches it.
Fundamentals – What’s Moving GBP/USD?
GBP News:
- The UK has been dealing with sticky inflation, so traders will be watching any economic data closely. If inflation remains high, the Bank of England (BoE) might need to stay hawkish, which could boost GBP.
- Keep an eye on UK GDP data—if it’s strong, GBP could pump. If it’s weak… well, let’s just say the bears might have a field day.
USD News:
- The US Dollar (DXY) is influenced by Federal Reserve (Fed) policy, and traders are still guessing when the next interest rate move will happen.
- Tomorrow, we’ve got US CPI (inflation report)—this is HUGE for the dollar. If inflation is higher than expected, the USD could strengthen, pulling GBP/USD lower.
- Any Fedspeak (comments from Fed officials) could shake things up, so stay tuned to the news!
Trade Setups to Watch
Bearish Scenario (Short Trade)
Entry: 1.2960 – 1.2980 (Resistance Rejection)
Take Profit:
- TP1: 1.2920 (Previous support & 50 EMA)
- TP2: 1.2900 (Stronger support zone)
Stop Loss: 1.2990 (Above key resistance)
Why?
- Price is extended and might need to retrace.
- A weak UK GDP or strong US CPI could push GBP/USD lower.
Bullish Scenario (Long Trade)
Entry: 1.2900 – 1.2920 (Support Bounce & 200 EMA)
Take Profit:
- TP1: 1.2960 (Previous high)
- TP2: 1.3000 (Big psychological level)
Stop Loss: 1.2880 (Below Asia Low)
Why?
- Price is in an uptrend overall.
- If US CPI is lower than expected, USD could weaken, boosting GBP/USD.
Final Thoughts – What’s the Game Plan?
- If price rejects resistance (1.2960 – 1.2980), I’ll look for a short.
- If price bounces off support (1.2900 – 1.2920), I’ll look for a long.
- Keep an eye on fundamentals (especially US CPI) and price action near key levels.
Your Move, Traders!
Are you taking the short or the long? Let me know in the comments!
Happy trading, and may your pips be plentiful!
