British Pound Technical Analysis: GBP/USD Pullback Grinds Support

The British Pound has so far enjoyed a very strong start to the year, even as the country continues to grapple with lockdown-driven economic pressure. But, the pace of vaccine rollout has been encouraging, especially if compared to mainland Europe, and this has helped to drive some optimism through the British Pound.

Against the US Dollar, the British Pound blew through a key price last week when launching above the 1.4000 psychological level. And bulls didn’t stop there, either, as buyers continued to push all the way up to 1.4243, where price action began to pullback ahead of the 4250 psychological level.

Since spiking up to that fresh high last Thursday, prices have been pulling back, eventually finding a bit of support around the 1.3900 level. That’s so far helped to stabilize price action, keeping the door open for bullish continuation scenarios in the pair.

What makes this setup so interesting is just how consistent the bullish trend has priced in since late-September, as can be seen below in the trend channel that’s held the bulk of price action over the past few months.

GBP/USD DAILY PRICE CHART

GBPUSD GBP USD Daily Price Chart

Chart prepared by James StanleyGBPUSD on Tradingview

Going down to a shorter-term chart, and we can see buyers grasping for support around that 1.3900 level. This can keep the door open for bullish continuation scenarios for trend-based strategies, looking for prices to move back towards a re-test of the 1.4000 psychological level.

GBP/USD TWO-HOUR PRICE CHART

GBPUSD Two Hour Price Chart

Chart prepared by James Stanley; GBPUSD on Tradingview

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