Introduction
6B is moving higher after a summer consolidation phase, with buyers stepping back in above moving average support. The chart shows a renewal of bullish momentum, and it’s turning more positive as sterling eyes the next resistance zone. Let’s take a deeper look at the technicals and what they are telling us.
Technical Update
There is a trend line support from the August lows that the price is holding above. The market temporarily dipped below the 50 moving average between July and September, but has now broken above it.
The pound has broken back above 1.3612 (near-term resistance), which, if sustained, could trigger a move higher toward the spring highs. The RSI is also at 61 which is a positive sign for the bulls.
Key Levels
| Level | Type | Note |
|---|---|---|
| 1.3750–1.3800 | Resistance | Next upside target, prior cluster of swing highs |
| 1.3612 | Resistance / Support Flip | Recent breakout zone; must hold for bulls |
| 1.3469 | Support | 50-day MA, first downside support |
| 1.3073 | Support | 200-day MA |
| 1.2827 | Support | March lows, long-term base |
Outlook
- Bull Case:
Sustained strength above 1.3612 opens the door to 1.3750–1.3800, a zone where sellers previously defended. A breakout here would confirm a medium-term trend reversal higher. - Bear Case:
Failure to hold above 1.3612 could see a pullback toward the 50-day MA (1.3469). A break under that level risks deeper retracement into the 1.3150–1.3070 zone.
Final Takeaway
6B futures are showing gradual bullish momentum, an uptrend line, moving averages, and an uptrending RSI are pointing toward a continuation. The rally is not overstretched, leaving room for continuation if 1.3612 holds. However, bulls still need to clear the 1.3750–1.3800 zone to unlock a bigger upside move.