Technical analytics

GBPUSD market technical outlook

GBPUSD

Daily chart:

So, the bulls failed not only to settle above the resistance zone 1.3700-1.3702, but even just to renew the high that would have been important from the mid-term uptrend extension point of view. We have a bearish close of yesterday’s bar and also “double top” formation (a reversal pattern, blue round marks). All this suggests probable start of new downswing in direction of the closest supports 1.3539 and 1.3541.

H1-chart:

Within the local structure we can attest downward tendency already: the market has tangible lower low and also apparently has no fuel to renew the highs. Given that corrective upward movement is already completed, we can expect a forming of bearish swing from current levels. An alternative plan today might be short-term movement to 1.3690, where we can distinguish probable limit offer volume within O&U pattern. 

Conclusions:

Main scenario: Decline of the quotes in direction 1.3539 and 1.3500.

Alternative scenario: Upward correction of the price to 1.3690, then steep downward reversal with a drop to 1.3500.

Trading recommendations:

Shorts to 1.3539 and 1.3500.

 

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