Technical Overview
• Support Levels:
o 1.3240 – Key support level as identified by buy-side imbalances
o 1.3200–1.3250 – Broader support zone if the 1.3240 level fails
• Resistance Levels:
o 1.3369–1.3435 – Resistance cluster; overcoming it may lead to stronger upside momentum
o 1.3834 – Extended bullish target if resistance is decisively broken, potentially triggering a rally toward the 1.4275 zone
• Indicators:
o Price hovered around the 50-day EMA—suggesting a neutral technical stance. A follow-through above could steer towards 1.3550, while a decline below 1.3300 may revitalize the downtrend toward the 200-day EMA (~1.3143).

Fundamental & Market Drivers
• Technical Bounce: A rebound from the Ichimoku Senkou Span B line on daily charts signals a potential northbound turn, though confirmation is needed.
• Cautious Bullish Sentiment: Forecasts suggest a modest bullish correction aimed at resistance near 1.3435, yet continued strength would depend on breaking key resistance levels.
• Upcoming Catalysts: U.S. retail sales, inflation figures, and risk sentiment are expected to drive volatility and direction this week.

Weekly Outlook & Strategy
Bullish Scenario
• Holding above 1.3240 could test resistance levels around 1.3369–1.3435.
• A successful breakout may pave the way toward 1.3834, with further upside toward 1.4275 if bullish forces prevail.
Bearish Scenario
• A break below 1.3240 opens pathway to a deeper sell-off toward 1.3200 and even lower.
• Persistent USD strength or negative UK data could push prices toward the 200-day EMA (~1.3143).