GBP/USD RETEST AGAIN THE RESISTANCE DOWNTREND LINE AT 1.3600
The hopes of government support to the London, due to Brexit-linked losses to the financial hub, join the positive progress on the US-UK Brexit trade talks to favor GBP/USD bulls. Elsewhere, the European Union (EU) took down multiple Brexit-linked sites, including the leave EU, while marking the latest spark with the UK. Additionally, news of the British-France tussles over immigration also portrayed Brexit woes.
During these political and economic events, GBP/USD touched again and retest the downtrend resistance line drawn from the high of the beginning of June last year and the strong psychological level at 1.3600. Yesterday the GBP/USD was trading higher and closed the day in the positive territory around $1.3528. Today it was trading in a narrow range of $1.3525-1.3600, staying close to 8-week highs. It would be interesting how the traders will react in the following days.
If the price continues growing and break with a strong bullish daily candle 1.3600 level it will activate the bulls on the market and the price probably easily will reach 1.3700. If that level doesn’t stop the upward movement it is possible to see prices around 1.3832 or higher to the strong psychological levels 1.3900 and why not 1.4000.
Retail trader data shows 49.59% of traders are net-long with the ratio of traders short to long at 1.02 to 1. If the price confirms the downtrend and resistance line and starts falling and breakthrough 1.3500 level it will activate the bears on the market. It is possible to see very quickly test of levels around 1.3366. If the sellers don’t stop there it is possible to see prices around 1.3200 or to reach the downtrend support line around 1.3000.
Looking at our oscillator indicators we can notice that RSI is very close to the overbought zone.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.
During these political and economic events, GBP/USD touched again and retest the downtrend resistance line drawn from the high of the beginning of June last year and the strong psychological level at 1.3600. Yesterday the GBP/USD was trading higher and closed the day in the positive territory around $1.3528. Today it was trading in a narrow range of $1.3525-1.3600, staying close to 8-week highs. It would be interesting how the traders will react in the following days.
If the price continues growing and break with a strong bullish daily candle 1.3600 level it will activate the bulls on the market and the price probably easily will reach 1.3700. If that level doesn’t stop the upward movement it is possible to see prices around 1.3832 or higher to the strong psychological levels 1.3900 and why not 1.4000.
Retail trader data shows 49.59% of traders are net-long with the ratio of traders short to long at 1.02 to 1. If the price confirms the downtrend and resistance line and starts falling and breakthrough 1.3500 level it will activate the bears on the market. It is possible to see very quickly test of levels around 1.3366. If the sellers don’t stop there it is possible to see prices around 1.3200 or to reach the downtrend support line around 1.3000.
Looking at our oscillator indicators we can notice that RSI is very close to the overbought zone.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.