Bearish outside day under 200-day SMA - sellers in control?
GBP/USD:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Support at 1.1904/1.2235 and long-term trendline resistance (1.7191) offers clear structure on the monthly timeframe, with the latter prompting a notable upper shadow in June.
Concerning the primary trend, lower peaks and troughs have decorated the monthly chart since early 2008, placing 1.1904/1.2235 support in a vulnerable position.
Daily timeframe:
Heading into the second half of last week, buyers and sellers clashed just south of the 200-day simple moving average at 1.2690, with Monday coming forward and chalking up a bearish outside day.
This throws light back on demand at 1.2192/1.2361, whereas a push above the aforesaid SMA could land things at supply from 1.3021/1.2844.
H4 timeframe:
Partially altered from previous analysis -
Leaving supply at 1.2720/1.2682 behind, traders observed Monday dethrone channel support (1.2257) and retest the broken level as resistance. The next available demand rests at 1.2462/1.2506, standing just ahead of support at 1.2453.
H1 timeframe:
1.26 and the 100-period simple moving average, despite an early push to highs at 1.2638 in early US trade Monday, failed to provide much impetus. This, in the shape of three dominant bearish candles, led price back to 1.2550, which, as you can see, holds as we write. The move also dragged the RSI into oversold terrain.
Should 1.2550 hold, intraday traders will be watching local trendline resistance (1.2666). Below 1.2550 we do not see much stopping the pair from crossing paths with 1.25.
Structures of Interest:
Candlestick action on the daily timeframe emphasises a potential bearish tone under the 200-day simple moving average at 1.2690. This could weigh on bullish attempts off 1.2550. Alternatively, it may support bearish strategies from local H1 trendline resistance (1.2666).
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Support at 1.1904/1.2235 and long-term trendline resistance (1.7191) offers clear structure on the monthly timeframe, with the latter prompting a notable upper shadow in June.
Concerning the primary trend, lower peaks and troughs have decorated the monthly chart since early 2008, placing 1.1904/1.2235 support in a vulnerable position.
Daily timeframe:
Heading into the second half of last week, buyers and sellers clashed just south of the 200-day simple moving average at 1.2690, with Monday coming forward and chalking up a bearish outside day.
This throws light back on demand at 1.2192/1.2361, whereas a push above the aforesaid SMA could land things at supply from 1.3021/1.2844.
H4 timeframe:
Partially altered from previous analysis -
Leaving supply at 1.2720/1.2682 behind, traders observed Monday dethrone channel support (1.2257) and retest the broken level as resistance. The next available demand rests at 1.2462/1.2506, standing just ahead of support at 1.2453.
H1 timeframe:
1.26 and the 100-period simple moving average, despite an early push to highs at 1.2638 in early US trade Monday, failed to provide much impetus. This, in the shape of three dominant bearish candles, led price back to 1.2550, which, as you can see, holds as we write. The move also dragged the RSI into oversold terrain.
Should 1.2550 hold, intraday traders will be watching local trendline resistance (1.2666). Below 1.2550 we do not see much stopping the pair from crossing paths with 1.25.
Structures of Interest:
Candlestick action on the daily timeframe emphasises a potential bearish tone under the 200-day simple moving average at 1.2690. This could weigh on bullish attempts off 1.2550. Alternatively, it may support bearish strategies from local H1 trendline resistance (1.2666).