GBPUSD - Breakout or Fake Breakout?
Currency Pair: GBPUSD
Frequency: GBPUSD
GBPUSD surged to one-year higher as BoE dove turned hawk and the BoE's policymaker Vligehe said I.R could rise in coming months. The change of mind for BoE was largely because of the UK CPI (Y) increased by 2.9%, which is higher than expected. The price broke the resistance zone of 1.34805 -1.35016 combing the high before Brexit and tested the higher level above 1.36. Theoretically speaking, if the price finds support on the previous resistance level then the price will able to go higher. However, when we look at the chart the price is still trading within the upward channel provided by the daily 50 EMA (White) so from my point of view, this could be a fake breakout and the price will have a consolidation at approx 1.35 level before going back.
The uncertainty off Brexit is still the biggest problem of the UK economy. If my prediction is corrected, then GBPUSD will soon to finish its corrective Wave 4 and the price will test for further lower of 1.20
Frequency: GBPUSD
GBPUSD surged to one-year higher as BoE dove turned hawk and the BoE's policymaker Vligehe said I.R could rise in coming months. The change of mind for BoE was largely because of the UK CPI (Y) increased by 2.9%, which is higher than expected. The price broke the resistance zone of 1.34805 -1.35016 combing the high before Brexit and tested the higher level above 1.36. Theoretically speaking, if the price finds support on the previous resistance level then the price will able to go higher. However, when we look at the chart the price is still trading within the upward channel provided by the daily 50 EMA (White) so from my point of view, this could be a fake breakout and the price will have a consolidation at approx 1.35 level before going back.
The uncertainty off Brexit is still the biggest problem of the UK economy. If my prediction is corrected, then GBPUSD will soon to finish its corrective Wave 4 and the price will test for further lower of 1.20
Comment:
Comment:
Waiting to break through the support level of 1.33623 to confirm a fake breakout.
Comment:
Like what I said before, breaking the support level of 1.33623 confirms the fake breakout and the price are now looking down at the white ascending line.
Comment:
Perfectly hit my white ascending line and the price may find support there. If the price drops below the psychological level of around 1.30 and breaks through the red ascending line then I will expect GBPUSD will able to test for the lower level of 1.20.
