Hivians! Its great to be back here.
GBPUSD is flashing warning signs that the 2025 rally may be over. However, markets have work to do.
Watch today’s video to see how I’m trading GBPUSD this week, including targets and possible reversal points. Also, get the latest on the US Dollar Index (DXY).
Has GBPUSD topped for the year? It’s certainly a scenario we have to entertain, given recent events.
In recent videos, I have discussed the similarities to the 2024 top. First is the rising wedge that broke down on Tuesday. Second is the RSI bearish divergence.
Even the DXY is starting to show signs of strength. However, markets have yet to confirm the breakout on the high time frames.
A GBPUSD scenario that interests me involves several buy-side imbalances. One at 1.3490 and the other at 1.3537.
These show as single prints on the GBPUSD 30-minute TPO. In other words, the market spent very little time in these areas during Tuesday’s selloff, making them potential targets.
While 1.3490 and 1.3537 could be local targets, we may also see the GBPUSD stall out here, specifically at 1.3537.
It’s the 0.618 Fibonacci retracement of the recent pullback, and also a daily imbalance based on Monday’s low.
Whether GBPUSD has topped for the year will depend on what happens at 1.3537 and if buyers can keep the pair above 1.3430 in the coming weeks.