The GBP/USD H4 – Demand pressure might be on the rise
The GBP/USD currency pair, on the H4 time-frame, was in a downward move until the 8th of November when a lower bottom was recorded at 1.27698. Demand then started to overwhelm supply.
After the lower bottom at 1.27698 the price broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator broke through the zero baseline into bullish terrain. A Strong Bullish Candle also formed during the breakout and thus further confirmed a possible price reversal or initial stages of a new trend.
A likely critical resistance level formed when a higher top was recorded on the 11th of November at 1.28993. Sellers are currently trying to pull the market lower.
If the GBP/USD breaks through the critical resistance level at 1.28993, three possible price targets can be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 1.28993 and dragging it to a possible support level at the 34 Simple Moving Average at 1.28158, the following targets can be calculated. The first target might be anticipated at 1.29510 (161 %). The second price target can be predicted at 1.30345 (261.8%) and the third and final target may be expected at 1.31696 (423.6%).
If the support level at 1.28158 is broken, the scenario is invalidated and will need to be re-evaluated.
As long as buyers maintain a positive attitude and demand overcomes supply, the outlook for the GBP/USD currency pair on the H4 time-frame will remain bullish.
Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.
After the lower bottom at 1.27698 the price broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator broke through the zero baseline into bullish terrain. A Strong Bullish Candle also formed during the breakout and thus further confirmed a possible price reversal or initial stages of a new trend.
A likely critical resistance level formed when a higher top was recorded on the 11th of November at 1.28993. Sellers are currently trying to pull the market lower.
If the GBP/USD breaks through the critical resistance level at 1.28993, three possible price targets can be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 1.28993 and dragging it to a possible support level at the 34 Simple Moving Average at 1.28158, the following targets can be calculated. The first target might be anticipated at 1.29510 (161 %). The second price target can be predicted at 1.30345 (261.8%) and the third and final target may be expected at 1.31696 (423.6%).
If the support level at 1.28158 is broken, the scenario is invalidated and will need to be re-evaluated.
As long as buyers maintain a positive attitude and demand overcomes supply, the outlook for the GBP/USD currency pair on the H4 time-frame will remain bullish.
Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.