Market Analysis: Today at 13:00, watch for the UK’s monthly GDP data for April, which is forecasted to contract by -0.1% (down from the previous 0.3% expansion), signaling an economic slowdown. Additionally, the Manufacturing Production MoM is expected at -0.2%, reflecting a slight cooling in production. If the actual data misses expectations, it could pressure the GBP in the short term. However, the overall direction of GBPTHB remains heavily dependent on USD movements.
Technical Outlook: On the 4-hour timeframe (4H), the overall chart exhibits a “Sideway Up” pattern. In the short term, recovery signals are emerging after the price successfully broke above the short-term downtrend line and reclaimed the Fib 0.382 level at 43.956, indicating fading selling pressure. The price is currently trading above the EMA. Meanwhile, the RSI is rebounding from lower levels and moving close to 50, showing returning buying momentum, while the MACD features a bullish crossover with the Histogram shifting into positive territory. If the price can sustain above 43.99, it has a good chance to test the immediate resistance target at 44.03 – 44.08.
Risk Analysis: Despite the initial recovery, the price is still moving within a consolidation zone and remains below the key resistance area of Fib 0.618 – 0.786 ($44.03 – 44.08$), where substantial selling pressure is clustered. Failure to break above this zone could trigger profit-taking, pulling the price back down to test the support at 43.96 – 43.93. Furthermore, since the RSI is still slightly below the 50 level, buying power isn’t fully robust yet, meaning traders should remain cautious of continued sideway fluctuations.
Support Level : 43.96 – 43.93
Target : 44.03 – 44.08
Stop Loss : 43.91
Technical Outlook: On the 4-hour timeframe (4H), the overall chart exhibits a “Sideway Up” pattern. In the short term, recovery signals are emerging after the price successfully broke above the short-term downtrend line and reclaimed the Fib 0.382 level at 43.956, indicating fading selling pressure. The price is currently trading above the EMA. Meanwhile, the RSI is rebounding from lower levels and moving close to 50, showing returning buying momentum, while the MACD features a bullish crossover with the Histogram shifting into positive territory. If the price can sustain above 43.99, it has a good chance to test the immediate resistance target at 44.03 – 44.08.
Risk Analysis: Despite the initial recovery, the price is still moving within a consolidation zone and remains below the key resistance area of Fib 0.618 – 0.786 ($44.03 – 44.08$), where substantial selling pressure is clustered. Failure to break above this zone could trigger profit-taking, pulling the price back down to test the support at 43.96 – 43.93. Furthermore, since the RSI is still slightly below the 50 level, buying power isn’t fully robust yet, meaning traders should remain cautious of continued sideway fluctuations.
Support Level : 43.96 – 43.93
Target : 44.03 – 44.08
Stop Loss : 43.91
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.