ICmarkets

GBP/USD Technical outlook and review.

FX:GBPUSD   British Pound/U.S. Dollar
36 0 0
4hr TF.

The higher picture resembles the following:

• Buyers are still seen deep within weekly supply territory at 1.76297-1.67702, with a little interest being shown by the sellers at the moment.
• The daily timeframe still shows price is currently trading in no man’s land between daily supply above at 1.76297-1.73024 and daily S/R flip level seen below at 1.69712.

The market opened at 1.71171, consolidated for a little while, then made an attempt to touch the round number 1.71000 before advancing. This was a little surprising as we expected price to break the aforementioned round number level down to around the 4hr S/R flip level at 1.70617-1.70459, instead a small bullish reaction was seen.

It is not over yet, notice the price symmetry forming? The second small downtrend line is not to show a trend forming, it is to show how pro money are likely consuming supply as price was declining, if we see a successful break above the high marked with an arrow at 1.71497 we can likely expect that the path is now once again clear to at least the round number above at 1.72000. Will pro money still drop price down to the 4hr S/R flip level (levels above) before rallying to the round number just mentioned? We believe it is still very likely as there is a high possibility they will need liquidity before moving price that far.

Pending/P.A confirmation orders:

• No pending buy orders (Green line) are seen in the current market environment.
• P.A confirmation buy orders (Red line) are seen just above demand (1.70617-1.70459) at 1.70662. A reaction north is likely to be seen here as there is no doubt unfilled buy orders left around this area when pro money made the ‘decision’ to push higher. However deep spikes can occur around flip areas (levels above) such as these, hence the need to wait for confirmation.

• No pending sell orders (Green line) are seen in the current market environment.
• P.A confirmation sell orders (Red line) are seen just below the round number 1.72000 at 1.71943. We have placed a P.A confirmation sell order here simply because these psychological levels are prone to deep tests/spikes, so sometimes it is better to wait for that all important confirmation.

• Areas to watch for buy orders: P.O: No pending buy orders seen in the current market environment. P.A.C: 1.70662 (likely to be set at 1.70423 TP: Dependent on approaching price action after the level has been confirmed).

• Areas to watch for sell orders: P.O: No pending sell orders seen in the current market environment. P.A.C: 1.71943 (SL: Dependent on price action after the level has been
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