GBP/USD: Technical outlook and review...

FX:GBPUSD   British Pound / U.S. Dollar
250 0
Weekly Timeframe: Cable, like the Euro , also formed a large full-bodied bearish candle stretching a little over 390 pips from open (1.5414) to close (1.5020). This move (likely caused by the NFP result as well) consequently forced prices down to just above (13 pips to be exact) an already proven weekly Quasimodo support level coming in at 1.5007.

Daily Timeframe: The situation on the daily timeframe shows that cable closed the week attacking a daily demand area at 1.4987-1.5061 (sits beautifully on top of the aforementioned weekly Quasimodo support level ). This area, as far as we can see, is the last line of defense for the weekly Quasimodo support level . Should this barrier be consumed this week, we can then likely expect the GBP to decline in value down towards a strong-looking daily demand area coming in at 1.4812-1.4949.

4hr Timeframe: From the 4hr timeframe, we can see price was driven south into a clean-looking 4hr demand area coming in at 1.4987-1.5020 (encapsulates the major round number 1.5000) , which, if you look back to the daily chart , you’ll notice that it’s located deep within the daily demand area mentioned above at 1.4987-1.5061.

Very similar the Euro , The GBP is also in a clear downtrend at the moment. However, we cannot ignore the fact that price is trading around very obvious demand from the weekly down to the 4hr timeframe (see above), which, incidentally, is where we believe price will likely try to stabilize itself today from the recent sell off seen on Friday. That being the case, we’re going to be watching price action very closely today around the aforementioned 4hr demand area. In the event that we see a signal to enter long, we’ll look to ride this baby up to the 1.5100 handle where we plan to take partial profits and move our stop to breakeven.

On the flip side, if this 4hr demand area fails to hold, we’ll then shift our attention to a small, almost hidden, 4hr Quasimodo support level seen just below at 1.4970 (located just below daily demand at 1.4987-1.5061). This could provide pro money with a fantastic barrier in which to fake price below to – one can only imagine the amount of stops located just below 1.5000 and this 4hr demand area!!

Current buy/sell orders:

• Buy orders: watching for lower timeframe confirmation round 4hr demand 1.4987-1.5020 (Predicative stop-loss orders are seen at: 1.4982).

• Sell orders: Flat (Predicative stop-loss orders are seen at: N/A).

Get real-time trading updates at our official Telegram group : https://t.me/ICMarketsroom
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