Will the GBPUSD holds the fib reactions?
www.keytomarkets.com...b-reactions/Dropping factory: The cable has witnessed another round of selling at 23.6% fib.
Before retracing to a five-month low, the price traced out a medium-term price top near 1.4345-1.4375 between Jan-Apr 2018 via the formation of a double top pattern. The recent shift in the sentiment rallied to 1.3470 its 23.6% fib reaction but attracted selling interest with supports at 1.3140 its 50.0% fib reaction of the Oct 2016-Apr 2018 rally. Below here, the focus will move down to 1.3060 its 100MA (Weekly), and the psychological support exists at 1.3000.
The recent short-term rallies (1.3200-1.3470 rally) should be considered counter-trend with a lower highs format. The near-term resistance moved down from 1.3710 to 1.3470 levels with stable support spread between 1.3060-1.3000 levels. The daily study, RSI has been making higher low though the price is drifting like a dead weight in the sky.
Probably we are going to trade between 1.3220-1.3130 before BOE. The daily studies on our favorite intraday charts (H1 and H4)are oversold. Supports are at 1.3130-1.3100 below this 1.3060, and 1.3000 exists. Resistance seems to be at 1.3230, well settles above Wednesday high could open to 1.3275 and 1.3300.
Forecast: Based on the given technical parameters we believe the cable offers limited downside risk. The risk-reward favors buying at 1.3100 with sl below 1.3000 targets 1.3220 and 1.3300 at the end of the day.
What if BOE follows ECB language?
Eventually, we are going to test the 61.8% fib reaction finds at 1.2800 and the four-year descending trendline finds at 1.2770.
Before retracing to a five-month low, the price traced out a medium-term price top near 1.4345-1.4375 between Jan-Apr 2018 via the formation of a double top pattern. The recent shift in the sentiment rallied to 1.3470 its 23.6% fib reaction but attracted selling interest with supports at 1.3140 its 50.0% fib reaction of the Oct 2016-Apr 2018 rally. Below here, the focus will move down to 1.3060 its 100MA (Weekly), and the psychological support exists at 1.3000.
The recent short-term rallies (1.3200-1.3470 rally) should be considered counter-trend with a lower highs format. The near-term resistance moved down from 1.3710 to 1.3470 levels with stable support spread between 1.3060-1.3000 levels. The daily study, RSI has been making higher low though the price is drifting like a dead weight in the sky.
Probably we are going to trade between 1.3220-1.3130 before BOE. The daily studies on our favorite intraday charts (H1 and H4)are oversold. Supports are at 1.3130-1.3100 below this 1.3060, and 1.3000 exists. Resistance seems to be at 1.3230, well settles above Wednesday high could open to 1.3275 and 1.3300.
Forecast: Based on the given technical parameters we believe the cable offers limited downside risk. The risk-reward favors buying at 1.3100 with sl below 1.3000 targets 1.3220 and 1.3300 at the end of the day.
What if BOE follows ECB language?
Eventually, we are going to test the 61.8% fib reaction finds at 1.2800 and the four-year descending trendline finds at 1.2770.
Trade active:
100 pips on hand. book partial profit