GBP/USD – What To Look For This Week?

There’s a lot of split decisions on Sterling at the moment, particularly due to Britain’s depart from the European Union.

Here’s my technical view.

Monthly:

It’s obvious that the bears have been losing their steam for over 6 months now.  GU had been consolidating in a 780 pip range for almost half a year before we saw an impressive move higher in May, completely violating the weekly resistance level of 1.2750.
The M.As are currently converging, if we see a crossover this could be the beginning of a major trend reversal.


Weekly:

After forming a double bottom off the 1.2000 level (psychological barrier), price has shifted its momentum to the upside, retracing into a Fibonacci level before continuing its climb.  Last week we saw a bear candle and the week closed out just below 1.3000.  This wasn’t too unexpected, as there would have been a lot of retail traders opening long positions as result of the prior week’s close, price was forced down into a probable huge pool of liquidity.  Nevertheless, this is something to be wary about when looking for buying opportunities.


Daily:

There isn’t much to go into detail about here, price is making Higher Highs and Higher Lows, with the most recent pullback being a retest of the broken monthly level.  My bullish sentiment will remain unless I see a clean break of the daily trend-line.


Intra-day:

Here is an opportunity that is currently available on the H4 time-frame.
Here is the possible case for entry:

  • Possible 3rd touch of TL
  • 61.8% Fibonacci retracement
  • M.A Cross
  • C.T.L break
  • Break and close above 1.3000 (H4).

 

 

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