GBP/USD Intraday Technical Analysis

[InstaPoster]

The spot rate bounced off on the lower limit of its medium term bullish channel at 1.5770 and is testing now the intermediate resistance of this one at 1.5900 suggesting a decline. However, a break of these levels will free a large potential and reach the upper limit of its channel at 1.6020.
Technical indicators provide sell signals and until the resistance is not broken, the assumption of a decline is most likely. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement. Furthermore, the spot rate evolves at the level of the superior band supporting the assumption of a violent movement in case of failure.
As the spot rate is currently testing the intermediate resistance of its channel, we recommend 2 scenarios: the first one is the hypothesis of a decline where we suggest a sell at the level of 1.5900 with the 1st objective at 1.5840 and then at 1.5820. A breakthrough 1.5860 will invalidate this scenario. The second scenario is a break of its resistance where we advice a “buy stop” which means buying the spot rate as soon as it is broken through its resistance of 1.5900 with the 1st objective at 1.5960 and then at 1.5980. A breakthrough 1.5880 will invalidate this scenario.
The material has been provided by Instaforex Company - instaforex.com

 

[junaid1001]

Basically, GBPUSD is in strong bearish trend now and this pair may tries to reach the support level at 1.5429. Then, if GBPUSD can also break that support, this pair may continue falling to the lower support level at 1.5349.But there's also a possibility to make a reversal movement on GBPUSD. If GBPUSD can rise and break the resistance level at 1.5506, this pair may rises to the higher resistance level at 1.5586.

 

[junaid1001]

BPUSD still in strong bearish trend now. This pair has broken the support level at 1.5349 strongly and now this pair also trying to reach the next support level at 1.5276. Then, if GBPUSD can also break that support level, I think it will make GBPUSD falls more deeper to the lower support level at 1.5205.

 

[junaid1001]

GBP/USD is testing critical support in the 1.52-53 region. This region has seen multiple lows over the previous few years. If the pair stabilized here we should see a short covering rally back to the 1.56 region. A break here will be bearish for the pair and should take it down to the 1.50 and 1.48 levels. watching price action.

 

[junaid1001]

If we look on daily time frame, we can see that the previous candle is a pin bar candle. So, I think the reversal movement may happens on GBPUSD after a strong bearish trend before. If GBPUSD can break the resistance level at 1.5276, I think GBPUSD has a chance to continue going up to the next resistance level at 1.5349 or even 1.5429 resistance.