What a busy week for GBPUSD. The pair managed to successfully bounce off the 1D descending channel, bullish flag, and entered within the 1D disjoint channel resistance from our previous analysis and seems to be heading towards its resistance. You may check our previous analysis by clicking the related idea below.
1W Analysis
The pair seems to have bounced off the 1W support zone, and seems to be heading towards the major resistance zone. A break above the resistance zone would cause the pair to rally even further and possibly test the next resistance zone.
1D Analysis
The pair seems to be testing a minor 1D resistance zone after bouncing off the 1W support zone. The Friday candle closed as a hanging man after the two candles prior to it tested the resistance zone. If the pair closes above the 1D resistance zone we could see a further rally in the price and possible a break of the 1W resistance zone in order to re-test the 1D ascending channel. However, if the pair fails to break above the 1D resistance zone then we may see the pair decline towards 1W support zone once more.
8H Analysis
The pair recently broke its trend line resistance and seems to be testing the support turned resistance of the 8H ascending channel it recently broke out of. A close inside the channel may indicate that the pair would be heading towards its resistance which is also within the 1W resistance zone. If the pair fails to close inside the channel, gets rejected, we may see a decline towards the trend line resistance turned support and a close below it would see the pair drop towards the 1W support zone.
4H Analysis
The pair seems to be having trouble with the resistance caused by the 8H ascending channel. The last candle closed as a doji so we would need to see the close of the next candle to have an idea as to what the pair might be doing.
2H Analysis
The pair seems to have closed above a 2H resistance zone with the last candle closing above it and testing it with its low. This could be a possible indication that the pair might be looking to continue with a rally. This would cause the pair to then enter back within the 8H ascending channel.
Conclusion
Monitor the pair on the 2H and 4H timeframe to see exactly what the pair does and how it coincides with the 8H, 1D and 1W in order to make an accurate trading decision.
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1W Analysis
The pair seems to have bounced off the 1W support zone, and seems to be heading towards the major resistance zone. A break above the resistance zone would cause the pair to rally even further and possibly test the next resistance zone.
1D Analysis
The pair seems to be testing a minor 1D resistance zone after bouncing off the 1W support zone. The Friday candle closed as a hanging man after the two candles prior to it tested the resistance zone. If the pair closes above the 1D resistance zone we could see a further rally in the price and possible a break of the 1W resistance zone in order to re-test the 1D ascending channel. However, if the pair fails to break above the 1D resistance zone then we may see the pair decline towards 1W support zone once more.
8H Analysis
The pair recently broke its trend line resistance and seems to be testing the support turned resistance of the 8H ascending channel it recently broke out of. A close inside the channel may indicate that the pair would be heading towards its resistance which is also within the 1W resistance zone. If the pair fails to close inside the channel, gets rejected, we may see a decline towards the trend line resistance turned support and a close below it would see the pair drop towards the 1W support zone.
4H Analysis
The pair seems to be having trouble with the resistance caused by the 8H ascending channel. The last candle closed as a doji so we would need to see the close of the next candle to have an idea as to what the pair might be doing.
2H Analysis
The pair seems to have closed above a 2H resistance zone with the last candle closing above it and testing it with its low. This could be a possible indication that the pair might be looking to continue with a rally. This would cause the pair to then enter back within the 8H ascending channel.
Conclusion
Monitor the pair on the 2H and 4H timeframe to see exactly what the pair does and how it coincides with the 8H, 1D and 1W in order to make an accurate trading decision.
If you liked this analysis make sure to give us a thumbs up, leave us a comment and make sure to follow us for future ideas 👍❤
