Watch 1.25 on GBP/USD: Breakout Could Define Next Major Move
10 February 2025
In today’s technical analysis, we focus on Cable (GBP/USD), which has established 1.25 as a crucial level over the past few months. This level, marked in blue, acted as a key support in November and December. However, after a breakout to the downside, 1.25 has turned into a key resistance, capping upward moves in January and February.
Currently, the price is below 1.25, which keeps the sentiment negative. In this scenario, short trades appear more favorable, particularly if the price breaks below the black dynamic support. Such a move would serve as confirmation of bearish momentum and provide a stronger sell signal.
On the flip side, if the price manages to close above the 1.25 resistance, it would trigger a powerful buy signal, potentially shifting the longer-term sentiment to bullish. For now, 1.25 remains the level to watch, as the next major move on Cable will likely depend on how the price reacts around this area.
Traders should stay alert to price action near this key resistance, as it will dictate whether bearish or bullish scenarios take control in the coming sessions.