Technical analytics

GBPUSD market technical outlook

GBPUSD

Daily chart:

Probability of further forming of downswing is still in place despite that yesterday’s session was closed with false break of bearish inside bar to the downside.

We see, that structure has consecutive renewal of low and high (watch the black round marks) suggesting an absence of steady directed trend.

H1-chart:

Local structure has formed bullish reversal pattern O&U. Within it we can consider long-trades from the penultimate low (1.2910 level). However given all conclusions from daily chart market is still likely to move lower towards support level 1.2887 (watch the black arrow).

Conclusions:

Main scenario: Decline towards 1.2887.

Alternative scenario: Decline towards 1.2910 and then upward reversal in direction 1.2970.

Trading recommendations:

  1. Shorts to 1.2910 and 1.2887.

  2. Longs from 1.2910 (after forming of confirming signal at this level).

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