Following economic activity in July stagnating for a second consecutive month, the focus was on the GBP/USD currency pair (British pound versus the US dollar).

Monthly Resistance

Technically, the trend remains to the upside for the pairing and recently reached a year-to-date high of US$1.3267.

Longer-term price action on the monthly timeframe is struggling to find acceptance above resistance at US$1.3111. Although recently breaching this resistance and spiking above the high of US$1.3142 (July 2023) helps confirm an uptrend, the fact price is struggling at the aforementioned resistance may concern prospective buyers.

Daily Decision Point Zone Breached

Knowing that monthly price is attempting to hold things below resistance, price action on the daily timeframe is seen navigating below a decision point zone at US$1.3081-US$1.3130. Should price clear willing bids around this area, further underperformance could be seen as far south as support coming in at US$1.2994.

H1 Ascending Channel In View

What’s interesting from a technical perspective is that H1 price is also currently working within the limits of an ascending channel between US$1.3049 and US$1.3087. Ultimately, should H1 action breakout below the said channel, coupled with what the monthly and daily timeframes are currently showing, this could trigger bearish interest towards the US$1.30 handle, closely shadowed by daily support from US$1.2994.

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