H4 buyers appear fragile, facing daily pressure off 1.2247...
GBP/USD:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Though under pressure, support at 1.1904/1.2235 remains in motion in May. A violation of this area, nevertheless, puts forward a 127.2% Fib ext. level at 1.1297. Neighbouring resistance, should we see an attempt at recovery, can be found in the form of a trendline (1.7191).
Concerning the primary trend, lower peaks and troughs have decorated the monthly chart since early 2008.
Daily timeframe:
Brought forward from previous analysis -
A few pips south of supply at 1.2649/1.2799 (prior demand), a double-top pattern formed at 1.2647, with last Wednesday consuming the neckline (April 21 1.2247) and establishing a potential take-profit target (purple) around 1.1855.
As of late, we have seen the British pound claw back some losses vs. the greenback, derailing downside attempts. However, traders, particularly pattern traders, will note the neckline at 1.2247 holds firm.
H4 timeframe:
Thursday, though eked out modest losses, finished somewhat neutral, clinging to channel support (1.2642 – prior resistance). It should also be noted local demand at 1.2184/1.2217 is in motion.
A break through demand could have traders make a play for channel support (1.2266) and maybe even fresh demand seen at 1.1771/1.1886, extended from March 25. Areas to the upside, aside from Tuesday’s high at 1.2296, can be seen from supply at 1.2477/1.2438.
H1 timeframe:
The 100-period simple moving average at 1.2208, coupled alongside the 1.22 level, withstood downside attempts heading into London on Thursday, prompting a mild recovery to highs at 1.2250, which, as you can see, held into the close.
Supply at 1.2295/1.2266 and the 127.2% Fib ext. level at 1.2265 remain upside targets today, with a breach of 1.22 placing 1.2150 on the radar.
Structures of Interest:
In similar fashion to Thursday we have the following to work with on Friday:
Monthly price holds 1.1904/1.2235, though this area is positioned against the major trend.
Buyers and sellers butt heads around the underside of the daily double top neckline at 1.2247.
H4 price is seen challenging channel resistance-turned support from 1.2642/demand at 1.2184/1.2217.
H1 action is finding some love off 1.22, but stalled around 1.2250.
Taking the above into account, H4 buyers appear fragile, facing daily pressure off 1.2247. This may lead to H1 tunnelling through 1.22 today and unlocking the door for bearish scenarios to at least 1.2150.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Though under pressure, support at 1.1904/1.2235 remains in motion in May. A violation of this area, nevertheless, puts forward a 127.2% Fib ext. level at 1.1297. Neighbouring resistance, should we see an attempt at recovery, can be found in the form of a trendline (1.7191).
Concerning the primary trend, lower peaks and troughs have decorated the monthly chart since early 2008.
Daily timeframe:
Brought forward from previous analysis -
A few pips south of supply at 1.2649/1.2799 (prior demand), a double-top pattern formed at 1.2647, with last Wednesday consuming the neckline (April 21 1.2247) and establishing a potential take-profit target (purple) around 1.1855.
As of late, we have seen the British pound claw back some losses vs. the greenback, derailing downside attempts. However, traders, particularly pattern traders, will note the neckline at 1.2247 holds firm.
H4 timeframe:
Thursday, though eked out modest losses, finished somewhat neutral, clinging to channel support (1.2642 – prior resistance). It should also be noted local demand at 1.2184/1.2217 is in motion.
A break through demand could have traders make a play for channel support (1.2266) and maybe even fresh demand seen at 1.1771/1.1886, extended from March 25. Areas to the upside, aside from Tuesday’s high at 1.2296, can be seen from supply at 1.2477/1.2438.
H1 timeframe:
The 100-period simple moving average at 1.2208, coupled alongside the 1.22 level, withstood downside attempts heading into London on Thursday, prompting a mild recovery to highs at 1.2250, which, as you can see, held into the close.
Supply at 1.2295/1.2266 and the 127.2% Fib ext. level at 1.2265 remain upside targets today, with a breach of 1.22 placing 1.2150 on the radar.
Structures of Interest:
In similar fashion to Thursday we have the following to work with on Friday:
Monthly price holds 1.1904/1.2235, though this area is positioned against the major trend.
Buyers and sellers butt heads around the underside of the daily double top neckline at 1.2247.
H4 price is seen challenging channel resistance-turned support from 1.2642/demand at 1.2184/1.2217.
H1 action is finding some love off 1.22, but stalled around 1.2250.
Taking the above into account, H4 buyers appear fragile, facing daily pressure off 1.2247. This may lead to H1 tunnelling through 1.22 today and unlocking the door for bearish scenarios to at least 1.2150.