Bearish Scenario: Sales below 5220... Bullish Scenario: Buys above 5225 (if price fails to break below decisively) ...
GBP/USD: technical review
2020-08-20 • Updated
Long term
Strategically, the range of 1.3240 to 1.3330 has been capping the upside for GBP/USD since early 2018. That means, currently, the British pound is coming to test the two-year resistance against the USD. Will it break it? The USD has been weak lately, and the last several months saw it mostly lose strength against the GBP. But the British pound is facing Brexit and heavier-than-ever economic pressures because of the troublesome fundamental layout of the UK economy. Noting the expanding downside of the GBP/USD movement area, we may assume that is the GBP doesn’t manage to stay strong against the USD, it may go all the way down to 1.1350 and below to make yet another lower low. That would take months, though, so just keep that as a secondary scenario for the long-term horizon.
Short term
Tactically, GBPUSD formed a figure that resembles a head-and-shoulders chart pattern with resistances of 1.3270 and 1.3180. Following the logic of the pattern, we may see further drop down to the support of 1.3015 and even below. However, as the time span of the shoulders is uneven, watch the price dynamic in the coming hours and on Friday to verify the bearish move. The support of 1.3070 is not yet broken – until that happens, the upside stays the primary scenario.
Similar
Bearish Scenario: Sell below 39600... Anticipated Bullish Scenario: Intraday buys above 39750... Bullish Scenario after Retracement: Intraday buys above 39150
Bearish scenario: Shorts below 18100 with TP1: 17900... Anticipated bullish scenario: Intraday Longs above 18130 with TP...
Latest news
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...