Today We experienced some pound weakness against the dollar, starting the day at 1.2599 and closing in between and 1.266. Tomorrow is a big day in terms of Bull and Bear decisiveness, we have CPI data and Inflation report hearings coming out during the London session, followed by U.S. Retail Sales numbers coming out during the NY session. Should we have positive news for the pound, I will remain Bullish on this Pair. I have given a top down (Monthly-Weekly-Daily) Technical Analysis on this pair below.

GBP/USD Daily Chart

Price has continued to remain above the 2 black trend-lines, and is making consecutive higher highs and lows. Price began the month at MM2 and is heading towards Bullish target of MR1 and MM4, Which is also the bottom of the post brexit range; which may prove to be considerable resistance in the future.

GBP/USD H4 Chart

Price is still rising and holding above Black trend line. Price began the week at WM3, and has found support at Wm2, The H4 candle has closed above the 61.8 fib retracement line, so further Bullishness in this area may be expected. The target from WM2 is WM4, (Bullish victory) whilst the target from WM3 IS WM1 (Bearish Victory), since price is stuck in between these two levels, it can go either way, However based on analysis, I still remain pound Bullish.

GBP/USD H1 chart

I have provided a few price action scenarios for both bears and bulls, and their possible outcomes. Price is currently moving in a bearish channel, a break out to either side is possible, the bullish scenarios 1 and 2 are show in black, the bearish 1 and 2 in red.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.