A whipsaw through this area to 1.24 is a possibility
GBP/USD:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Though under pressure, support at 1.1904/1.2235 remains in motion in May. Neighbouring resistance, should we see an attempt at recovery, can be found in the form of a trendline (1.7191). A violation of support, nevertheless, puts forward a 127.2% Fib ext. level at 1.1297.
Concerning the primary trend, lower peaks and troughs have decorated the monthly chart since early 2008.
Daily timeframe:
Partially altered from previous analysis -
A few pips south of supply at 1.2649/1.2799 (prior demand), a double-top pattern formed at 1.2647, with May 13 consuming the neckline (April 21 1.2247) and establishing a potential take-profit target (purple) around 1.1855.
In recent sessions, the double-top neckline at 1.2247 held as resistance – that was until yesterday’s 1.2% advance. However, recent buying does not imply the double-top pattern will fail; what it does mean, though, traders are able to sell this market at a better price, as protective stop-loss orders are generally positioned above pattern peaks: 1.2647.
H4 timeframe:
According to the H4 chart, price action has been grinding channel support (1.2642 – prior resistance) since topping last Tuesday at 1.2296. Yesterday, nonetheless, gathered traction to the upside, producing what appears to be the D-leg of an ABCD bearish configuration (orange) at 1.2389.
Above the ABCD completion, trendline resistance (prior support – 1.2163) is seen uniting with supply at 1.2477/1.2438.
H1 timeframe:
Amid a sharp slump in the USD Tuesday, sterling found itself testing highs at 1.2362, brushing aside a number of key technical resistances on the H1 timeframe and hauling the RSI indicator into overbought waters.
Supply at 1.2373/1.2345 put a cap on gains as we headed into US trade, an area that could force a retest at 1.23. Still, a whipsaw through the round number is in the offing, knowing demand (prior supply) at 1.2295/1.2266 resides close by.
Structures of Interest:
Monthly price holds 1.1904/1.2235, despite positioned against the major trend.
Sellers on the daily timeframe appear fragile right now, in spite of the recent double-top resistance forming at 1.2647.
H4 price has eyes on 1.2390ish – the ABCD completion – as possible resistance.
H1 price is testing supply at 1.2373/1.2345. A whipsaw through this area to 1.24 is a possibility, which happens to align nearby the H4 ABCD correction. This scenario may appeal to intraday sellers. However, do be aware we are coming off monthly support.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Though under pressure, support at 1.1904/1.2235 remains in motion in May. Neighbouring resistance, should we see an attempt at recovery, can be found in the form of a trendline (1.7191). A violation of support, nevertheless, puts forward a 127.2% Fib ext. level at 1.1297.
Concerning the primary trend, lower peaks and troughs have decorated the monthly chart since early 2008.
Daily timeframe:
Partially altered from previous analysis -
A few pips south of supply at 1.2649/1.2799 (prior demand), a double-top pattern formed at 1.2647, with May 13 consuming the neckline (April 21 1.2247) and establishing a potential take-profit target (purple) around 1.1855.
In recent sessions, the double-top neckline at 1.2247 held as resistance – that was until yesterday’s 1.2% advance. However, recent buying does not imply the double-top pattern will fail; what it does mean, though, traders are able to sell this market at a better price, as protective stop-loss orders are generally positioned above pattern peaks: 1.2647.
H4 timeframe:
According to the H4 chart, price action has been grinding channel support (1.2642 – prior resistance) since topping last Tuesday at 1.2296. Yesterday, nonetheless, gathered traction to the upside, producing what appears to be the D-leg of an ABCD bearish configuration (orange) at 1.2389.
Above the ABCD completion, trendline resistance (prior support – 1.2163) is seen uniting with supply at 1.2477/1.2438.
H1 timeframe:
Amid a sharp slump in the USD Tuesday, sterling found itself testing highs at 1.2362, brushing aside a number of key technical resistances on the H1 timeframe and hauling the RSI indicator into overbought waters.
Supply at 1.2373/1.2345 put a cap on gains as we headed into US trade, an area that could force a retest at 1.23. Still, a whipsaw through the round number is in the offing, knowing demand (prior supply) at 1.2295/1.2266 resides close by.
Structures of Interest:
Monthly price holds 1.1904/1.2235, despite positioned against the major trend.
Sellers on the daily timeframe appear fragile right now, in spite of the recent double-top resistance forming at 1.2647.
H4 price has eyes on 1.2390ish – the ABCD completion – as possible resistance.
H1 price is testing supply at 1.2373/1.2345. A whipsaw through this area to 1.24 is a possibility, which happens to align nearby the H4 ABCD correction. This scenario may appeal to intraday sellers. However, do be aware we are coming off monthly support.
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.