The GBP/USD currency pair failed to extend Friday’s gains on Monday after pulling back to trade at around 1.2220 ahead of the G7 Meeting. The currency pair remains in a bullish movement following last week’s reversal that was triggered by consolidative sideways trading.

The currency pair is now positioned above both the 100-hour MA line and the counterpart 200-hour MA line, which illustrates a short-term bullish bias in the market sentiment.

The GBP/USD currency pair also appears to be solidly supported on multiple levels at around, 1.2055, 1.2100 and 1.2180, which was recently a key resistance zone, now turned support after Friday’s rally.

GBP/USD Fundamentals Overview

The GBP/USD currency pair continues to consolidate below 1.2300 as the impact of the Brexit uncertainty becomes less amid escalating US-China trade tensions. This explains why the Pound Sterling has made some gains against the greenback in recent trading sessions as demonstrated by Friday’s rally.

Today’s G7 Meeting will be a key fundamental feature that traders will look to trade on or against during the week. The US durable goods orders coming in at around 12:30 GMT will also provide some insights for traders. Analysts expect a growth of about 1.1% for July down from 1.9% in the previous period.

It will also be interesting to see whether risk-off trading continues in the US markets after Friday’s declines signaled a potential shift towards safe-haven investments like gold and silver.

GBP/USD Technical Analysis (the 60-min Chart)

Technically, the GBP/USD currency pair appears to have recently bounced off overbought levels after Friday’s rally. It has now retracted to the normal trading zone, which suggests that the current trend could continue through this week.

Therefore, the bulls will be targeting short-term profits at around 1.2290 or higher at 1.2344. On the other hand, the bears will look to pounce on the pair by targeting profits at around 1.2203 and lower at 1.2174.

GBP/USD Technical Analysis (the Daily Chart)

In the daily chart, the GBP/USD currency pair appears to be trading under intense bearish pressure, which illustrates a long-term bearish bias in the market sentiment. It remains firmly positioned above the median line of the Pitchfan originating off the current multi-year highs. 

After the recent rebound just above the current trendline support at 1.2014, the pair seems to be on the way up, which creates opportunities for the bulls at around 1.2371 and 1.2524. On the other hand, the bears will look to pounce for long-term profits at around 1.2105 or lower at 1.2014.

In summary, the GBP/USD currency pair appears to be experiencing a short-term bullish bias but in the long-term, the bears appear to be firmly in control.