Economics
Next Target on GBP/USD: 1.2514?
The Great Britain pound versus the US dollar currency pair, after the last drop, seems to be governed by the bears. Can the bulls turn the situation in their favor? Long-term perspective The rally that started after the validation of 1.1476 as support began an ascending trend that extended a hair away from 1.3502. Prior to the last upwards leg, the currency pair found itself above the 1.3000 intermediary level (which happens to be a psychological […]
The Great Britain pound versus the US dollar currency pair, after the last drop, seems to be governed by the bears. Can the bulls turn the situation in their favor?
Long-term perspective
The rally that started after the validation of 1.1476 as support began an ascending trend that extended a hair away from 1.3502.
Prior to the last upwards leg, the currency pair found itself above the 1.3000 intermediary level (which happens to be a psychological level as well) and under the triple resistance defined by the descending trendline, the upper line of the ascending channel, and the 1.3261 firm resistance area.
The 1.3000 intermediary level facilitated a new rise which, even if it managed to pierce the aforementioned triple resistance and depart from it, it ended up as a false piercing, as it returned under the resistance.
Moreover, the fall tried but failed to find support at the 1.3000 psychological level, as the invalidated pin-bar on September 3 highlights. As a result, the depreciation continued until the 1.2777 intermediary level.
So, if the bullish pressure continues, then 1.2777 could also cede, leaving the bears free to drive the price to 1.2514. On the flip side, if 1.2777 — at least for the time being — remains support, another rise could occur, but it might be limited by 1.3000.
Short-term perspective
The depreciation from the 1.3482 high extended until the 1.2762 low, finding support at the firm 1.2783 level. From there, it rotated, thus causing an appreciation that found resistance at 1.2983, as the 1.3007 high implies.
So, in the current context, the price could be contained within a range, bounded by 1.2983 and 1.2783. As the range is preceded by a depreciation phase and as a range, usually, is a continuation pattern, it is to be expected that — sooner or later — the support will give way, targeting 1.2612.
On the other hand, if the resistance is the one that will be invalidated, then the bulls could hope for revisiting 1.3175.
Levels to keep an eye on:
D1: 1.2777 1.2514 1.3000
H4: 1.2983 1.2783 1.2612 1.3175
© DorinRosu for Forex News, 2020. |
Permalink |
No comment |
Add to
del.icio.us
Post tags: Dollar, GBP/USD, Pound, United Kingdom, United States
Feed enhanced by Better Feed from Ozh
This Quarter Was Different: The Big Reversal
We’ve been all over the “Big Reset,” which is upending many things. It’s disheartening to hear most of the Street analysts speak as if nothing…
Why Bonds Are Behaving Like Risky Assets
Why Bonds Are Behaving Like Risky Assets
Authored by MN Gordon via EconomicPrism.com,
“When the [credit] delusion breaks, people all with…
There’s Blood In the Streets! Here’s Why & What To Do About It
Rarely has there been a market where both stocks and bonds have fallen so hard at the same time and, if you’ve tried to hide in cash, well, inflation…
NATO Officially Blames “Sabotage” For Nord Stream Damage; Fourth Leak Discovered
#Bitcoin and #gold Could Rally by Year’s End: Bloomberg @business Analyst
Multipolar World Order – Part 2
Macro Pulse Early Warning: Need A Bigger Boat
7 Profitable Places to Hide Your Money as We Enter a Bear Market
Nomura Hikes Fed ‘Terminal Rate’ Forecast, Warns “Everything Else Is An Emerging Market”
In Latest Recession Signal, Money-Supply Growth Plummeted to a Three-Year Low in August
Should you buy ATOM as Cosmos Hub released the ATOM 2.0 whitepaper?
The Housing Bubble Has Officially Burst : Case-Shiller Records First Drop In Home Prices Since 2012
One Of The Market’s Most Important ‘Stress’ Indicators Is Flashing Red
-
Economics20 hours agoAnti-Globalism Is Going Mainstream – Which Means Engineered Disaster Is About To Strike
-
Drilling News18 hours agoAton announces the first results and completion of the resource infill RC drilling programme at Hamama West
-
Precious Metals17 hours agoWhen and Where Will Gold Bottom?
-
Economics7 hours agoThere’s Blood In the Streets! Here’s Why & What To Do About It
-
Uncategorized22 hours agoStockman Slams Washington’s Pointless War On Behalf Of A Fake Nation
-
Financing News24 hours agoSILVERCORP REPORTS 2022 AGM RESULTS AND APPOINTS NEW DIRECTOR
-
Economics7 hours agoCommodities Are Practically Bulletproof Investments Going Forward
-
Companies18 hours agoNevada Exploration Provides Project Updates and Seeks Expressions of Interest
