GBP/USD technical outlook and review...
GBP/USD:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Early February 2018 saw the pair reject 1.4520/1.3893, a 50.0% retracement and 38.2% Fibonacci retracement combination (red). This, along with trendline resistance (2.1161), remains a well-rounded resistance area to keep an eye on long term.
In recent months, a recovery formed off 1.1904/1.2235, clocking highs of 1.3514 in December 2019 and breaking the 1.3380 March 2019 high. The month of February declined nearly 3.00%, with March attempting to reclaim lost ground, currently trading at +0.66%.
Daily timeframe:
After reconnecting with familiar supply at 1.3303/1.3184, following a whipsaw through channel resistance (1.3284), daily price chalked up a spirited retreat Tuesday. Down more than 220 points, or 1.70%, GBP/USD now faces nearby demand at 1.2649/1.2799, dovetailing with channel support (1.2954) and the 200-day SMA, currently circulating around 1.2687.
In terms of the RSI indicator, we can see the value dipped through 50.00 in recent trade.
H4 timeframe:
Extending losses south of supply at 1.3209/1.3171, which made its entrance at the beginning of the week, Tuesday witnessed supply-turned demand at 1.3023/1.3006 and demand plotted at 1.2947/1.2969 cede ground. As you can see, price action entered the jaws of demand at 1.2859/1.2875, forming a half-hearted hammer candlestick configuration. A breach of the said demand draws focus to demand at 1.2768/1.2813.
H1 timeframe:
Ahead of today’s budget (outlines the government's budget for the year, including expected spending and income levels), sterling traded lower amid recent trade, conquering the key figure 1.30 and the 100-period SMA to the downside. Price mildly pared losses into the close out of a small, yet significant, area of demand at 1.2860/1.2875. Aside from also representing H4 demand, its importance comes from what the area achieved on the H1: it was the origin behind the break of highs around 1.2920ish.
Upside from the current demand is relatively free to approach 1.2950, with a break of this area clearing the river north back to 1.30. Also worthy of pencilling down is the RSI indicator recently exiting oversold terrain after bottoming at 25.00.
Structures of Interest:
Continued upside is possible, given demand out of the H4 timeframe at 1.2859/1.2875, though expect resistance to form around 1.2947, the lower edge of H4 demand-turned supply, and 1.2950 on the H1.
Should we push through current H1 demand today, on the other hand, and breach 1.2850, downside appears free to 1.28, an interesting area of support. Not only does it hold close the top edge of daily demand at 1.2799, the upper area of H4 demand at 1.2768/1.2813 coincides close by, too.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Early February 2018 saw the pair reject 1.4520/1.3893, a 50.0% retracement and 38.2% Fibonacci retracement combination (red). This, along with trendline resistance (2.1161), remains a well-rounded resistance area to keep an eye on long term.
In recent months, a recovery formed off 1.1904/1.2235, clocking highs of 1.3514 in December 2019 and breaking the 1.3380 March 2019 high. The month of February declined nearly 3.00%, with March attempting to reclaim lost ground, currently trading at +0.66%.
Daily timeframe:
After reconnecting with familiar supply at 1.3303/1.3184, following a whipsaw through channel resistance (1.3284), daily price chalked up a spirited retreat Tuesday. Down more than 220 points, or 1.70%, GBP/USD now faces nearby demand at 1.2649/1.2799, dovetailing with channel support (1.2954) and the 200-day SMA, currently circulating around 1.2687.
In terms of the RSI indicator, we can see the value dipped through 50.00 in recent trade.
H4 timeframe:
Extending losses south of supply at 1.3209/1.3171, which made its entrance at the beginning of the week, Tuesday witnessed supply-turned demand at 1.3023/1.3006 and demand plotted at 1.2947/1.2969 cede ground. As you can see, price action entered the jaws of demand at 1.2859/1.2875, forming a half-hearted hammer candlestick configuration. A breach of the said demand draws focus to demand at 1.2768/1.2813.
H1 timeframe:
Ahead of today’s budget (outlines the government's budget for the year, including expected spending and income levels), sterling traded lower amid recent trade, conquering the key figure 1.30 and the 100-period SMA to the downside. Price mildly pared losses into the close out of a small, yet significant, area of demand at 1.2860/1.2875. Aside from also representing H4 demand, its importance comes from what the area achieved on the H1: it was the origin behind the break of highs around 1.2920ish.
Upside from the current demand is relatively free to approach 1.2950, with a break of this area clearing the river north back to 1.30. Also worthy of pencilling down is the RSI indicator recently exiting oversold terrain after bottoming at 25.00.
Structures of Interest:
Continued upside is possible, given demand out of the H4 timeframe at 1.2859/1.2875, though expect resistance to form around 1.2947, the lower edge of H4 demand-turned supply, and 1.2950 on the H1.
Should we push through current H1 demand today, on the other hand, and breach 1.2850, downside appears free to 1.28, an interesting area of support. Not only does it hold close the top edge of daily demand at 1.2799, the upper area of H4 demand at 1.2768/1.2813 coincides close by, too.
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