Review of Previous Trades & Market Overview
Yesterday, GBP/USD attempted to climb after mixed UK inflation data but faced resistance at the weekly high, triggering profit-taking. Later, selling pressure intensified, breaking the sideways trend and pushing the pair lower. The pound remains under pressure due to economic concerns, increasing the risk of further declines.
Trading Analysis & Key Levels
A test of 1.2595 saw limited upside as the MACD was overbought, making buying unfeasible. Similarly, a test at 1.2571 didnβt present a shorting opportunity due to MACDβs oversold position. However, Scenario #2 unfolded, allowing a buy trade at 1.2571, securing a 25-pip gain.
Whatβs Next?
Today's focus is on the CBI Industrial Orders Balance, a key measure of UK manufacturing strength. A positive reading signals growth, while a decline could reinforce the poundβs bearish trend. Traders should monitor this release for potential GBP/USD movement.
