Technical analytics

GBPUSD market technical outlook

GBPUSD

Daily chart:

Long-term resistance 1.2810 is broken that explicitly points to a strength of buyers on this clearly bullish market. Nevertheless chances for correction are still in place. First of all the length of upswing was extended (making harder its further development). Secondly, bulls provided themselves with a strategically important new high (and downward correction doesn’t bring a threat of reversal now).

Thus we can expect subsiding growth at the area of round level 1.2900.

H1-chart:

A very big upswing is formed within local structure as well that also may point to overbought conditions and necessity of pullback. However strong trends oftentimes get the progress right on such expectations of correction, therefore shorts are out of the question so far. The major either will directly reach resistance 1.2900 today (blue arrow) or will do the same after a corrective decline to PPZ 1.2758-1.2771 (black trajectory).

Conclusions:

Main scenario: Growth to 1.2900 with following switch to downward correction.

Alternative scenario: Downward pullback to 1.2758-1.2771 and then new spike to 1.2900.

Trading recommendations:

  1. Longs to 1.2900.

  2. Seeking probable sell signals on H1-chart at 1.2900.