GBP/USD Technical Analysis – Rangebound | Forexlive
On the daily chart below, we can
see that after failing to break the support level at 1.1839, the price
rallied towards the trendline and then after a breakout
extended towards the 1.2265 resistance. The moving
averages crossed to the upside signalling a possible change in trend.
The buyers for now are in control
as the risk sentiment remains tentatively positive trading into the FOMC
decision tomorrow. All the emergency measures taken by the central banks calmed
the markets for now, but sentiment can turn on a dime lately, so keep following
ForexLive in case we get a breaking news
that can move the market greatly.
On the 4 hour chart below, we can
see that the sellers are leaning on the 1.2265 resistance as the price is
reacting to it. We may see a pullback after such a strong rally in the past
days as also signalled by the divergence between the price and the MACD. The sellers will of course
target the breakout of the trendline to extend the selloff towards the 1.1839
support.
The buyers, on the other hand,
will lean on the trendline, the red long period moving average and a Fibonacci
retracement level to target the break above the 1.2265
resistance and ultimately look forward to the 1.2444 high.
On the 1 hour chart below, we can
see that we have another minor trendline supporting the uptrend. A break below
this trendline will give the sellers control and enough conviction to run
towards the major trendline.
The buyers will try to defend it
and if we get a break above the high at 1.2285, then they will remain in
control and keep charging towards new higher highs unless a negative catalyst hits
the newswires.