Technical analytics

GBPUSD market technical outlook

GBPUSD

Daily chart:

Yesterday’s session was closed by a peculiar “pin” - formally it’s a pinbar. However it’s unlikely that this pinbar will become a full-value long trigger.

First of all the structure didn’t get a prior downswing. At its tip such signal would have a completely different potential.

Secondly right now there is a very solid mid-term resistance 1.2767-1.2810 under the price and and it doesn’t seem possible to overcome it without a corrective swing.

Thus the most likely scenario is a downward reversal of the price from 1.2767-1.2810. 

H1-chart:

Local structure of the market so far keeps bullish tone. This casts doubt on ability of resistance zone 1.2741-1.2765 to stop growth of the quotes. On the other hand this area looks quite complicated for free upward movement. Therefore we incline to opinion that the price will reverse to the downside right from this region allowing bears to sell out the pound in direction of support 1.2642. 

Conclusions:

Main scenario: Downward reversal after testing of 1.2741-1.2765. Target is 1.2642.

Alternative scenario: In case of move above 1.2765 the major will test 1.2800-1.2810 and where we again would expect a downward reversal.

Trading recommendations:

Shorts from 1.2765 and 1.2810 to 1.2642.