GBP/USD:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Early February 2018 saw the pair reject 1.4520/1.3893, a 50.0% retracement and 38.2% Fib retracement combination (red). This, along with trendline resistance (2.1161), remains a well-rounded resistance area to keep an eye on long term.
In recent months, a recovery formed off 1.1904/1.2235, clocking highs of 1.3514 in December 2019 and breaking the 1.3380 March 2019 high. The month of February declined nearly 3.00%, with March attempting to reclaim lost ground.
Daily timeframe:
Partially altered from previous analysis -
After reconnecting with familiar supply at 1.3303/1.3184, following a whipsaw through channel resistance (1.3284), daily price chalked up a spirited retreat Tuesday. Down more than 220 points, or 1.70%, GBP/USD extended losses Wednesday and now faces nearby demand at 1.2649/1.2799, dovetailing closely with channel support (1.2954) and the 200-day SMA, currently circulating around 1.2687.
In terms of the RSI indicator, we can see the value dipped through 50.00 in recent trade.
H4 timeframe:
After slicing through demand at 1.2859/1.2875 and retesting the underside of demand-turned supply at 1.2947/1.2969, GBP/USD fell to lows of 1.2804, registering its second consecutive daily loss. Demand at 1.2768/1.2813 made its debut; the area also holds a deep 88.6% Fib retracement within at 1.2775.
Traders will note the current H4 demand is glued to the top edge of daily demand mentioned above at 1.2649/1.2799.
H1 timeframe:
Sterling witnessed initial weakness Wednesday after the Bank of England (BoE) became the latest central bank to lower rates, coming to market with an emergency 50bps reduction in the bank rate from 0.75% to 0.25%. Despite moves to lows at 1.2830, the pair swiftly reversed though failed to sustain gains above the 1.2950 region/H1 channel resistance (1.3199) and ended the day a few points off 1.28.
Structures of Interest:
With the H1 RSI testing oversold levels, H1 channel support (1.2830) and the 1.28 handle in view, coupled with H4 demand entering the fray at 1.2768/1.2813, bolstered by daily demand at 1.2649/1.2799, this may be enough to encourage buying, at least back to 1.2850 and the underside of H4 demand-turned supply at 1.2859/1.2875.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Early February 2018 saw the pair reject 1.4520/1.3893, a 50.0% retracement and 38.2% Fib retracement combination (red). This, along with trendline resistance (2.1161), remains a well-rounded resistance area to keep an eye on long term.
In recent months, a recovery formed off 1.1904/1.2235, clocking highs of 1.3514 in December 2019 and breaking the 1.3380 March 2019 high. The month of February declined nearly 3.00%, with March attempting to reclaim lost ground.
Daily timeframe:
Partially altered from previous analysis -
After reconnecting with familiar supply at 1.3303/1.3184, following a whipsaw through channel resistance (1.3284), daily price chalked up a spirited retreat Tuesday. Down more than 220 points, or 1.70%, GBP/USD extended losses Wednesday and now faces nearby demand at 1.2649/1.2799, dovetailing closely with channel support (1.2954) and the 200-day SMA, currently circulating around 1.2687.
In terms of the RSI indicator, we can see the value dipped through 50.00 in recent trade.
H4 timeframe:
After slicing through demand at 1.2859/1.2875 and retesting the underside of demand-turned supply at 1.2947/1.2969, GBP/USD fell to lows of 1.2804, registering its second consecutive daily loss. Demand at 1.2768/1.2813 made its debut; the area also holds a deep 88.6% Fib retracement within at 1.2775.
Traders will note the current H4 demand is glued to the top edge of daily demand mentioned above at 1.2649/1.2799.
H1 timeframe:
Sterling witnessed initial weakness Wednesday after the Bank of England (BoE) became the latest central bank to lower rates, coming to market with an emergency 50bps reduction in the bank rate from 0.75% to 0.25%. Despite moves to lows at 1.2830, the pair swiftly reversed though failed to sustain gains above the 1.2950 region/H1 channel resistance (1.3199) and ended the day a few points off 1.28.
Structures of Interest:
With the H1 RSI testing oversold levels, H1 channel support (1.2830) and the 1.28 handle in view, coupled with H4 demand entering the fray at 1.2768/1.2813, bolstered by daily demand at 1.2649/1.2799, this may be enough to encourage buying, at least back to 1.2850 and the underside of H4 demand-turned supply at 1.2859/1.2875.