Technical analytics

GBPUSD market technical outlook

GBPUSD

Daily chart:

We see multiple bullish convergence of RSI oscillator in effect - the last four lows of the structure were not confirmed by RSI lows. And it’s very likely to be an upward reversal of the trend.

The first target is dynamic resistance 1.2613 (middle Bollinger band).

H4-chart:

We note a strong local resistance at the 1.2559 level, from where we can see a downward pullback to the 1.2479 region, where we can consider entry to long-positions within Head-and-shoulders pattern.

H1-chart:

We note two support zones, that presumably will stop downward correction today. It’s 1.2501-1.2506 and 1.2472. We can open long-positions from each of these zones with good likelihood of successful execution.

Expectations:

We expect decline towards support zones 1.2501-1.2506 and 1.2472 and after that growth will be resumed in direction 1.2559 and 1.2613.

Trading recommendations:

Longs at the 1.2501-1.2506 and 1.2472 zones towards 1.2559 and 1.2613.