GBP/USD Technical Forecast
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GBP/USD – From Bullish to Sideways
For the reason that finish of final week, GBP/USD uptrend transfer has been shedding momentum. Consumers couldn’t retest 1.3000 deal with on one hand, nor they had been profitable to overhaul the Oct 30 excessive at 1.2976 on the opposite. This resulted with a sideways transfer and a reversal could also be on the best way to occur.
Alongside this, the Relative Energy Index (RSI) declined from 68 to 59 highlighting weaker uptrend impulse.
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GBP/USD DAILY PRICE CHART (Nov 1, 2017 – Nov 7, 2019) Zoomed out
GBP/USD DAILY PRICE CHART (June 1 – Nov 7, 2019) Zoomed IN
From the each day chart, we discover on Oct 30, GBP/USD rebounded close by the excessive finish of present buying and selling zone 1.2785- 1.3048. Later, the worth pointed decrease making a double high sample the place the neckline resides on the low finish of the zone as mentioned in final week replace.
This implies that if the worth breaks and stays under the low finish of the zone , it might press in the direction of 1.2550. Additional shut under this stage might see GBPUSD buying and selling even decrease in the direction of 1.2360. Nonetheless, the each day and weekly help ranges underlined on the chart (zoomed in) must be watched carefully.
That stated, if sellers fail in forcing a detailed under the low finish of the zone, this might trigger GBPUSD to proceed its sideways transfer i.e. pullback in the direction of the excessive finish of the zone.
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GBP/USD 4 Hour PRICE CHART (Oct 1 – Nov 7, 2019)
Trying on the four-hour chart, we discover on Friday GBP/USD U- turned and traded decrease creating the second high of double high sample mentioned above on the each day chart.
Thus, sellers might finish present sideways transfer if GBPUSD breaks under 1.2706. This might lead the worth in the direction of 1.2616. Though, the weekly help stage underscored on the chart must be thought-about.
On the flip-side, consumers might finish present sideways transfer with a break above 1.3028 hinting in the direction of 1.3072. In that state of affairs, the weekly resistance stage marked at 1.3048 must be monitored.
See the chart to search out out extra about key ranges GBPUSD would encounter in an additional bearish /bullish state of affairs.
Written By: Mahmoud Alkudsi
Please be at liberty to contact me on Twitter: @Malkudsi