The Daily chart depicted above shows that the GBP/USD pair could break its long-term downtrend line of January. Since then it has been trading within an uptrend despite some sideways consolidation in November and March.
Nevertheless the GBP/USD pair showed a significant bearish reaction towards 1.5950 - 1.6000 which gave some bearish expectations. The pair has failed to break through the level 1.5800 which allowed the bulls to make a strong push to the upside and break 50% & 61.8% Fibonacci levels at 1.5925 & 1.6090 respectively.
Price levels 1.6262 -1.6300 mentioned yesterday correspond to the backside of the broken short-term uptrend line & previous Supply zone.
Yesterday the significant bearish reaction took place as the GBP/USD had daily closure below 1.6262 at 1.6233 which opens the way for the pair to visit 1.6090 ( 61.8% Fibonacci Level ).
On the 4H chart, we see that the GBP/USD pair has recently broken the consoildation range between 1.6077-1.6145 with successful retesting which allowed the GBP/USD pair to resume its bullish movement towards 1.6262.
Yesterday the GBP/USD pair has failed to reach the upper limit of the depicted bullish channel at 1.6330. Instead it showed bearish movement shown on the 4H closure below 1.6262 which was followed by further decline.
4H closure below 1.6225 confirms breakdown of the lower limit of the bullish channel depicted above giving another SELL entry at retesting of the backside of its broken lower limit.
Support Levels for the GBP/USD pair are located at 1.6150 then 1.6090 which should be watched for profit taking of the suggested yesterday's SELL entry.
Yesterday we recommended a SELL entry at 4H closure below 1.6262 which is open now with TP levels at 1.6250,1.6155 &1.6100 with SL as daily closure above 1.6385.
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