Overview :
The GBP/USD pair continues to move upwards from the level of 1.2796. According to the previous events, the GBP/USD pair is still moving between the levels of 1.2796 and 1.2928; for that we expect a range of 132 pips (1.2796 - 1.2928).
On the one-hour chart, immediate support level is seen at 1.2547, which coincides with a ratio of 00% Fibonacci retracement - last bearish wave - double bottom. Currently, the price is moving in a bullish channel.
This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. The price is still above the moving average (100) and (50). Therefore, if the trend is able to break out through the first resistance level of 1.2928, we would see the pair climbing towards the daily resistance at 1.2928 to test it.
It would also be wise to consider where to place stop loss; this should be set below the second support of 1.2796. It should always be noted that: If the trend is upward, the strength of the currency will be defined as follows: GBP is in an uptrend and USD is in a downtrend. The stop loss should never exceed your maximum exposure amounts. The market is highly volatile if the last day had huge volatility.
However, the price spot of 1.3010 remains a significant resistance zone. Therefore, there is a possibility that the GBP/USD pair will move downside and the structure of a fall does not look corrective. It will indicate the bearish opportunity below 1.3010, sell below 1.3010 or 1.2969 with the first target at 1.2796 in order to test last week's bottom.
If the price of Pound Sterling is trading above 1.2583 then possibility of upside targets getting achieved is higher around the level of 1.2783. The basic bullish trend is very strong on the GBP/USD pair, but the short term shows some signs of running out of steam. Nevertheless, a purchase could be considered as long as the price remains above 1.2461.
Crossing the first resistance at 1.2583 would be a sign of a potential new surge in the price. Buyers would then use the next resistance located at 1.2583 as an objective. Crossing it would then enable buyers to target 1.2583. Caution, a return to below 1.2583 would be a sign of a consolidation phase in the short-term basic trend. If this is the case, remember that trading against the trend may be riskier.
It would seem more appropriate to wait for a signal indicating reversal of the trend. In the very short term, the general bullish sentiment is not called into question, despite technical indicators being indecisive. All elements being clearly bullish market, it would be possible for traders to trade only long positions on the GBP/USD pair as long as the price remains well above the price of 1.2461.
A bullish break in this resistance would boost the bullish momentum. The buyers could then target the resistance located at 1.2583. This suggests that the pair will probably go up in coming hours. If the trend is able to break the level of 1.2583 (double top), then the market will call for a strong bullish market towards the objective of 1.2615 this week.
It is also should be noted, beware of bullish excesses that could lead to a possible short-term correction; but this possible correction would not be tradeable. On the other hand, in case a reversal takes place and the GBP/USD pair breaks through the support level of 1.2432, a further decline to 1.2400 can occur.
It would indicate a bearish market. Signals: The trend is still bullish as long as the price of 1.2585 is not broken. Thereupon, it would be wise to buy above the price of at 1.2585 with the primary target at 1.2678. Then, the GBP/USD pair will continue towards the second target at 1.2718 . The breakdown of 1.2585will allow the pair to go further down to the prices of 1.2492.
The GBP/USD pair broke resistance which turned to strong support at the level of 1.2377 yesterday. The level of 1.2377 coincides with a golden ratio (23.6% of Fibonacci), which is expected to act as major support today. The Relative Strength Index (RSI) is considered overbought because it is above 55.
The RSI is still signaling that the trend is upward as it is still strong above the moving average (100). This suggests the pair will probably go up in coming hours. Accordingly, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 1.2377 with the first target at the level of 1.2434. From this point, the pair is likely to begin an ascending movement to the point of 1.2377 and further to the level of 1.2434.
Consequently, the first support is set at the level of 1.2377. So, the market is likely to show signs of a bullish trend around the spot of 1.2377/1.2380. If the GBP/USD pair succeed to break through the resistance level of 1.2434, the market will scaling further to 1.2460. This would suggest a bullish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs.
The pair is expected to drop higher towards at least 1.2460 with a view to test the daily pivot point. The level of 1.2543 will act as strong resistance and the double top is already set at the point of 1.2543. On the other hand, if a breakout happens at the support level of 1.2377, then this scenario may become invalidated.
Signal :
According to the previous events, the price of the GBP/USD pair has been still trading between the levels of 1.2796 and 1.2928. The level of 1.2969 is representing the double top and the weekly support one has set at the same price. Buy above the spot of 1.2796 with the targets 1.2928 and 1.2969. On the other hand, the daily strong support is seen at 1.2796 . If the GBP/USD pair is able to break out the level of 1.2796, the market will decline further to 1.2696.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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