GBP/USD Technical Evaluation
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GBP/USD Worth – Extra Consolidation
On Nov 18, GBP/USD rallied in the direction of 1.2985- its highest stage in 4 weeks. Later, the value declined then continued its sideways transfer creating decrease highs with larger lows.
The Relative Energy Index (RSI) declined from 67 nonetheless remained above 50, highlighting weak consumers and weaker sellers.
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GBP/USD DAILY PRICE CHART (Nov 9, 2017 – Nov 26, 2019) Zoomed out
GBP/USD DAILY PRICE CHART (AUG 23 – Nov 26, 2019) Zoomed IN
From the day by day chart, we discover final week GBP/USD failed in a number of events to rally to the upper buying and selling zone. At present, the value continues to be transferring within the buying and selling zone (1.2785- 1.2965) entered in Oct 16.
On Nov 21, the pair rebounded from the excessive finish of the zone as consumers took revenue at this stage permitting GBPUSD to reverse route searching for a take a look at of the low finish of the zone.
Thus, a detailed under the low finish of the zone might mirror extra consumers exiting the market. This might open the door for sellers to take the lead and press in the direction of 1.2550. In that state of affairs, the attainable downtrend transfer might weaken on the help ranges underlined on the chart (zoomed in) as some sellers might take revenue at these factors.
In flip, any failure in closing under the low finish might imply consumers nonetheless holding positions. This might reverse the pair’s course and rally the value in the direction of the excessive finish of the zone. Additional shut above the excessive finish might break the impasse pushing GBPUSD in the direction of 1.3048. Nonetheless, the weekly resistance ranges underscored on the chart ought to be thought of.
Learn our final replace to know extra concerning the continuation sample that would lead the value above 1.3150 in an additional bullish state of affairs.
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GBP/USD 4 Hour PRICE CHART (Oct 1 – Nov 26, 2019)
Wanting on the four-hour chart, we discover on Nov four GBP/USD broke under the uptrend line originated from the Oct 24 low at 1.2788. On the next day the value rebounded from the uptrend line then declined in the direction of the low finish of the buying and selling zone mentioned above on the day by day chart.
Final week, the value motion repeated the identical sample i.e. broke under the uptrend line originated from the Nov eight Low at 1.2769, then rebounded from the uptrend line on the next day eyeing a take a look at of the low finish of the low finish of the buying and selling zone.
Therefore, a break under the Nov eight Low may lead GBPUSD in the direction of 1.2672. Though, the weekly help space marked on the chart ought to be stored in focus. However, a break above 1.2921 might ship the value in the direction of 1.2988. But, the excessive finish of present buying and selling zone talked about above ought to be watched carefully.
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