Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24
Micro Strategy Bubble Mania - 10th May 24
Biden's Bureau of Labor Statistics is Cooking Jobs Reports - 10th May 24
Bitcoin Price Swings Analysis - 9th May 24
Could Chinese Gold Be the Straw That Breaks the Dollar's Back? - 9th May 24
The Federal Reserve Is Broke! - 9th May 24
The Elliott Wave Crash Course - 9th May 24
Psychologically Prepared for Bitcoin Bull Market Bubble MANIA Rug Pull Corrections 2024 - 8th May 24
Why You Should Pay Attention to This Time-Tested Stock Market Indicator Now - 8th May 24
Copper: The India Factor - 8th May 24
Gold 2008 and 2022 All Over Again? Stocks, USDX - 8th May 24
Holocaust Survivor States Israel is Like Nazi Germany, The Fourth Reich - 8th May 24
Fourth Reich Invades Rafah Concentration Camp To Kill Palestinian Children - 8th May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

GBPUSD rebounded from 1.2589

Currencies / British Pound Jun 29, 2017 - 12:01 PM GMT

By: Franco_Shao


Being supported by the 20-weekly moving average on its weekly chart, the GBPUSD pair rebounded from 1.2589, suggesting that lengthier consolidation for the long term downtrend from the July 2014 high of 1.7190 is needed.

Let’s look into its 4-hour chart chart. The pair recently moved above a major trend line from 1.2977 to 1.2814 at 1.2725 and bounced to as high as 1.2975. There is also a rising trend line with support at around 1.2775. As long as the pair is above the rising trend line, the bullish movement from 1.2589 could be expected to continue, and further rise to test the May 18 high of 1.3047 resistance is possible. A break of this level could take price to the top resistance trend line of the price channel on the weekly chart, now at around 1.3200.

The key resistance for the long term downtrend from 1.7190 is located at the 38.2% Fibonacci retracement taken from the July 2014 high of 1.7190 to the October 2016 low of 1.1946 at around 1.3950. As long as this level holds, the bounce from 1.1946 could be treated as consolidation of the downtrend from 1.7190, and another fall towards 1.1000 is still possible after the consolidation.

The near term key support is at the rising trend line on the 4-hour chart. Only a clear break below the trend line support will confirm that the short term uptrend from 1.2589 is complete, this could trigger another fall towards 1.2000.

Technical levels

Support levels: 1.2775 (the rising trend line on 4-hour chart), 1.2589 (June 21 low), 1.2109 (the March 14 low), 1.1946 (the October 2016 low).

Resistance levels: 1.3047 (the May 18 high), 1.3200 (the top trend line of the price channel on weekly chart), 1.3950 (the 38.2% Fibonacci retracement).

This article is written by Franco Shao, a senior analyst at ForexCycle.

© 2017 Copyright Franco Shao - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2022 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in