January 02, 2025 at 09:50AM
The British Pound Futures (6B March 2025) are trading at 1.2482, correlating closely with the GBP/USD Forex pair at 1.24877. The British Pound appears bearish in the broader context, with key levels pointing to further downside potential. Below is a detailed breakdown for both swing traders and day traders.
GBPUSD Swing Traders: Broader Bearish Trend
On the monthly chart, the British Pound Futures are continuing a leg down from the high of 1.3431 reached in September 2024. This follows a broader downtrend since the historic low of 1.0392 on September 1, 2022.
The next key levels to watch are:
1.246: A significant historic level with high liquidity, likely to act as the next support.
1.244 and 1.2436: Deeper support levels, representing additional liquidity zones that may come into play if 1.246 is broken.
Swing traders should focus on these levels as potential targets in the ongoing bearish trend.
Day Traders: Key Levels for the Cable Today
Bearish Levels to Watch
1.248: Today’s developing Value Area Low (VAL). Price seems intent on breaking below this level, signaling further bearish momentum toward 1.246.
1.2493: Today’s Point of Control (POC), where significant trading volume is concentrated.
1.2498 and 1.2504: Both previous naked levels that could act as minor resistance if price retraces.
1.2506: Today’s developing VWAP, the critical line in the sand between bulls and bears. As long as price remains below this level, the bearish outlook dominates.
Bullish Levels to Watch for British Pound Futures
1.2515: Today’s developing Value Area High (VAH). A break above this level could open the door to a short-term bullish move.
1.2535: Yesterday’s Value Area High (VAH) and a naked level for today.
Outlook for the Great British Pound: Bears in Control
The British Pound Futures market is showing a strong bearish bias. Unless price conquers the VWAP at 1.2506 and moves above today’s VAH at 1.2515, the bearish trend is likely to persist, targeting 1.246 and potentially lower levels like 1.244 and 1.2436.
What British Pound Traders Should Be Looking Out For
Below 1.2506: The market remains bearish. Watch for a break of 1.248 to confirm momentum toward 1.246.
Above 1.2506: A bullish scenario emerges, with potential resistance at 1.2515 and 1.2535.
Swing Focus: The broader downtrend suggests 1.246 is a key target for swing traders, with further downside to 1.244 and 1.2436 if support fails.
As always, trade British Pound Futures and the GBP/USD pair at your own risk and align strategies with your market outlook.Visit ForexLive.com for additional views.
This article was written by Itai Levitan at www.forexlive.com.
