GBP/USD: Technical outlook and review.

FX:GBPUSD   British Pound / U.S. Dollar
161 5
Weekly Timeframe: This week has shown that the buyers broke above a weekly resistance swap level coming in at 1.57166, but nonetheless seems to have found selling opposition around 1.58246. Let’s take a look on the lower timeframes to see what we can find.

Daily Timeframe: The reason for the selling pressure likely comes down to a daily supply area seen at 1.59438-1.58338. For higher prices to be seen on the pound, this area would need to be consumed. If the buyers can hold out above 1.57166 on this timeframe, this could be a signal that buying strength is entering the market.

4hr Timeframe: A nice bearish reaction was seen from the 4hr decision-point supply area at 1.58389-1.58103 (located just below the aforementioned daily supply area). We were clearly wrong not to be looking for shorts there!

As we can all see price is presently trading around a 4hr resistance swap area at 1.57208-1.56927, which surrounds the aforementioned weekly resistance swap level. We will be watching the lower timeframes around the 1.57263 area for some sort of buying confirmation that strength is entering the market. If this area fails, be prepared for acceleration to the downside towards at least the 4hr support area coming in at 1.55917-1.56299, where buying could potentially be seen again (tentative buy orders are seen within the support area at 1.56141). The reason why prices could drop this far is because we believe most of the demand to the left has already been consumed – check out the pink trendline , and the demand consumption tails that form it at 1.56781/1.56475/1.56274.

Buy/sell levels:

• Buy orders: 1.57263 (Predicative stop-loss orders seen at: 1.56876) 1.56141 (Predicative stop-loss orders seen at: 1.55634).

• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).
Get real-time trading updates at our official Telegram group : https://t.me/ICMarketsroom
Hi Skuffone,

We will try to explain this the best I can, and, this is only our opinion, so please do take it as such :) We see this as pro money activity, when pro money were buying into the market around the pink trendline, notice how each time price made a high, it declined to a mini pocket of demand to presumably collect unfilled buy orders to continue rallying higher. However, what this also does at the same time is clear the path south for the sellers (pro money already consumed the buy orders). Now say if we break below 1.57208-1.56927, this in our view clears out the last remaining FRESH buy orders, and once that happens price will likely drop since there is very little buying opposition left in the market.

Did that help at all, if not I will try to simplify it

Good luck

IC Markets.
Hi, The Mini pocket of demand being the 1.57208-1.56927. If so, then this make sense and I appreciate the response. As a ICM customer it is also very positive to see this kind of review on TV. Thank you.
ICmarkets Cryptoelite
Not quite. I am going to try and attach a chart which should help explain things a little better.

Hi thanks that makes sense - so there is a mini pocket of demand at each retracement to keep price moving up. I thought there was reference to one pocket.
Battle is currently underway i see
Hi Thanks for this analysis, I was thinking about the higher time frame here. Not sure I quite understand this "The reason why prices could drop this far is because we believe most of the demand to the left has already been consumed – check out the pink trendline, and the demand consumption tails that form it at 1.56781/1.56475/1.56274." Would you be so kind to explain ?
Home Stock Screener Forex Screener Crypto Screener Economic Calendar Shows How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Refer a friend My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out