Technical analytics

GBPUSD market technical outlook

GBPUSD

Daily chart:

Downswing got a new low yesterday pointing to weakness of buyers, who lost quite a strong setup in the shape of bullish pinbar by the way.

However a probability of break of stiff and strong support zone 1.2165-1.2250 is in big question as numerous limit buy orders might reside there. Thus an upward bounce off this zone is very likely.

H1-chart:

Local downward structure is in trending stage so far. But given the absence of full-scale corrective upswing in the structure, we can also expect an upward bounce off 1.2250 here.

Though, as we mentioned above, daily support area is quite wide and we need take into consideration a probability of reaching the lowest point of the range (1.2165). A pullback may take place in direction of 1.2310 and 1.2355 (black trajectory).  

Conclusions:

Main scenario: Touch of 1.2250 and then upward pullback in direction 1.2310 and 1.2355.

Alternative scenario: Decline to 1.2165 and then steep reversal to the upside.

Trading recommendations:

Longs from 1.2250 and 1.2165.

 

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