GBPUSD has pulled back quite a chunk after hitting the monthly trendline and right now we are sitting on the 200 Day Moving average and also holding just above 0.382 Fibonacci retracement from an all-time low in march
Next week will be an extremely important week for GBPUSD since the pair will either bounce back to levels above 1.28 or drop below the 200 Daily SMA and continue the rally.
Starting from Wednesday GBPUSD has gone into a zone between 1.2690-1.2775 and there is a breakout attempt on Friday Europe opening but eventually got push back and all the way down to the low of the zone
Despite the pullback of DXY leading all USD pairs having a week to pull back a little, stochastic divergence are coming in to show a sign of trend reversal
But right before US market closing, there is a stochastic divergence showing up in H1 chart which indicated a trend reversal and leading the pair pulled back from the low of the zone to 1.275 and it is possible to be breaking the high of the zone and closing the day above 1.278 on Monday which will give a clear bullish signal as a break of market structure
But if GBPUSD did continue the rally and falling below 0.382 level and trading below 200 Daily SMA, then the significant levels below 200 Daily SMA are
1.246
1.225
1.21
Please be aware that there is huge uncertainty over the United Kingdom as
- it is getting closer and closer to the end of the transition period for Brexit
- second wave of corona looming as cases spikes
Thank you for reading, please leave a like if you like the idea, hope you have a good weekend!
Next week will be an extremely important week for GBPUSD since the pair will either bounce back to levels above 1.28 or drop below the 200 Daily SMA and continue the rally.
Starting from Wednesday GBPUSD has gone into a zone between 1.2690-1.2775 and there is a breakout attempt on Friday Europe opening but eventually got push back and all the way down to the low of the zone
Despite the pullback of DXY leading all USD pairs having a week to pull back a little, stochastic divergence are coming in to show a sign of trend reversal
But right before US market closing, there is a stochastic divergence showing up in H1 chart which indicated a trend reversal and leading the pair pulled back from the low of the zone to 1.275 and it is possible to be breaking the high of the zone and closing the day above 1.278 on Monday which will give a clear bullish signal as a break of market structure
But if GBPUSD did continue the rally and falling below 0.382 level and trading below 200 Daily SMA, then the significant levels below 200 Daily SMA are
1.246
1.225
1.21
Please be aware that there is huge uncertainty over the United Kingdom as
- it is getting closer and closer to the end of the transition period for Brexit
- second wave of corona looming as cases spikes
Thank you for reading, please leave a like if you like the idea, hope you have a good weekend!
