Technical analytics

GBPUSD market technical outlook

GBPUSD

Yesterday the price got an explicit bounce off support 1.2165 having formed a bullish pin at the tip of downswing. But today’s downward pullback already exceeded 50% of this pin, therefore there is a chance of quotes decline much below the 1.2165 mark (red arrow).

Buyers have positioning advantage in this situation, therefore scenario of growth prevails so far. 

H1-chart:

Local upward structure got an upward reversal via bullish pattern Over&Under, which is already triggered. Nevertheless it will be very tough to go above resistance zone 1.2238-1.2241 today. We’ll probably see one more pullback from this zone to 1.2200-1.2209, where buyers will regain control. But this most likely will happen after the weekend.

 

Conclusions:

Main scenario: Growth to 1.2238-1.2241, then decline to 1.2200-1.2209 and the main phase of reversal afterwards.

Alternative scenario: Break above 1.2241 and growth to 1.2300.

Trading recommendations:

  1. Longs to 1.2238-1.2241.

  2. Shorts from 1.2238-1.2241 to 1.2200-1.2209.

  3. New longs from 1.2200-1.2209.

  4. In case an alternative scenario (break above 1.2241) pans out - longs to 1.2300. 

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