Technical analytics

GBPUSD market technical outlook

GBPUSD

Daily chart:

There are controversial signals on the chart. From one hand continuation of downtrend looks indisputable and we have several arguments in favor of this scenario: break of lower Bollinger band, crash of bullish pattern O&U, growing bearish ADX. From the other hand - RSI oscillator continues to display triple bullish convergence, that can be interpreted as weakening of sellers and overall shift of balance on the market.

Nevertheless bears still possess the advantage, therefore we can’t rule out a drop of the pair to the 24th figure (below the 1.2500 mark) today.

H4-chart:

There is a dynamic support from lower Bollinger band at the psychologically important zone 1.2500. Plus we need to note tangible oversold conditions. But activity of ADX also stays on a high level here.

H1-chart:

Intraday time-frame also has long-lasting RSI convergence. Thus today the major can stay in the range of lower Bollinger bands (1.2498-1.2550).

Expectations:

Main scenario: Flat in the 1.2498-1.2550 range.

Alternative scenario: Decline under 1.2498 towards 1.2450.

Trading recommendations:

Trading inside the 1.2498-1.2550 channel.

 

New articles