Market analysis

Resistance

Also calledresistance level · price resistance

Resistance is a price area above the current market price where selling interest may slow or halt an advance. It is commonly identified from prior highs, trend lines, moving averages, or widely watched price levels, but it is not a guaranteed ceiling.

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Record updated
August 18, 2026

Resistance — definition, practical meaning, example, and common interpretation risk checked against the linked reference material

Definition checked

  • Definition and plain-English explanation for “Resistance”
  • The worked example and the distinction described in the watch-out note
  • Reference material: CME Group — Support and Resistance, CME Group — Understanding Moving Averages

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  • Read the connected terms when a definition depends on another market concept
  • Check the broker’s contract specification when applying the term to a particular product
  • Treat examples as explanations of mechanics, not as prices, forecasts, or trading advice

Method. Editorial desk review of the definition, example, related concepts, and 2 linked sources. Calculations are checked directly where the entry contains arithmetic

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  • This glossary entry explains terminology and does not test a broker, trading account, platform, or live market condition
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What Resistance means

When price approaches a previous high or another watched area above the market, analysts may call it resistance because earlier buying lost momentum there or sellers became more active. Resistance is normally a zone, not a precise number. A price can briefly trade above it, touch it, or move through it without confirming a lasting change.

Resistance provides a practical reference for interpreting an advance and comparing it with prior price behavior. It can also help explain why a market pauses near a known area. It does not indicate that selling will prevail, and it cannot account for unexpected information or changing market liquidity.

Assume GBP/USD reached 1.2750 on two prior occasions and then declined. When it later rises from 1.2600 toward 1.2750, an analyst may identify approximately 1.2745–1.2755 as resistance. A sustained move above that area could cause the prior resistance to be reassessed.

Common questions

Can resistance become support?+

It can. After price moves above a resistance zone, analysts may watch whether that area supports a later decline into it. The role reversal is possible, not automatic.

Is resistance always a previous high?+

No. Previous highs are one common reference. Analysts may also use moving averages, trend lines, round-number areas, or other technical methods to identify possible resistance.

Go to the original material.

01CME Group — Support and Resistance02CME Group — Understanding Moving Averages