On the Daily chart, GBP/USD could have produced a double top near the 1.3500 psychological resistance area. As can be seen, since then, a sharp correction down followed, reaching 1.2700 area. Currently, a correctional move up is taking place, and the most important fact is the rejection of the 78.6% Fibonacci retracement level at 1.3313. At the same time, GBP/USD bounced off the two average-price uptrend trendlines, implying the importance of the 1.3300 resistance area.
Therefore, as long as the price remains below the recently printed high at 1.3313, GBP/USD should be expected to initiate a downside move. The key support could be located at 1.2817, which is confirmed by 78.6% Fibs, applied to the last wave down, where GBP/USD bottomed out back in March.
On the hourly chart, price broke below the 50 Simple and Exponential Moving Average, flowed by the ascending channel breakout. Fibs, applied to the corrective move up after EMA breakout, shows that 1127.2% Fibs exactly corresponds to the previously mentioned downside target, which is located at 1.2717. And finally, it can be seen that today GBP/USD has clearly rejected the 61.8% Fibs at 1.3233, validating the bearish dominance.
Overall, GBP/USD remains under selling pressure, but only as long as the price stays below the 1.3313 level. A break above will invalidate the bearish scenario and a long-term uptrend is likely to continue.
Key support levels: 1.3100, 1.2817
Key resistance levels: 1.3313, 1.3242
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice
Therefore, as long as the price remains below the recently printed high at 1.3313, GBP/USD should be expected to initiate a downside move. The key support could be located at 1.2817, which is confirmed by 78.6% Fibs, applied to the last wave down, where GBP/USD bottomed out back in March.
On the hourly chart, price broke below the 50 Simple and Exponential Moving Average, flowed by the ascending channel breakout. Fibs, applied to the corrective move up after EMA breakout, shows that 1127.2% Fibs exactly corresponds to the previously mentioned downside target, which is located at 1.2717. And finally, it can be seen that today GBP/USD has clearly rejected the 61.8% Fibs at 1.3233, validating the bearish dominance.
Overall, GBP/USD remains under selling pressure, but only as long as the price stays below the 1.3313 level. A break above will invalidate the bearish scenario and a long-term uptrend is likely to continue.
Key support levels: 1.3100, 1.2817
Key resistance levels: 1.3313, 1.3242
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice