Technical analytics

GBPUSD market technical outlook

GBPUSD

 Daily chart:

The major didn’t make just 98 points to the important psychological barrier 1.3000. Will bulls stop at 1.2900? Or they’ll nail their main target? Well, it’s the main question of today.

If we don’t pay attention to the “magic” of 1.30, then at least downward correction to the broken PPZ 1.2810 suggests itself.

H1-chart:

Local structure has a reversal bearish pattern with sell entry point from the penultimate high (1.2900). A plus point is that we might extremely low stops here (about 5-10 points). A minus point is that this pattern may prove to be a bearish trap.

If a downward bounce off 1.2900 eventually takes place, then a new downswing can quite reach support zone 1.2804. 

Conclusions:

Main scenario: Growth to 1.2900, then decline to 1.2804.

Alternative scenario: Break above 1.2902 and further growth to 1.3000.

Trading recommendations:

  1. Shorts from 1.2900 to 1.2804.

  2. Longs above 1.2902 to 1.3000.