Dip-buying strategies off 1.27?
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Support at 1.1904/1.2235 and long-term trendline resistance (1.7191) offers clear structure to work with on the monthly timeframe, with the latter recently welcoming price action.
Concerning the primary trend, lower peaks and troughs have decorated the monthly chart since early 2008, placing 1.1904/1.2235 support in a vulnerable position.
Daily timeframe:
After mingling below the 200-day simple moving average at 1.2698 since July 9, yesterday’s action squeezed above the aforesaid value. This could witness price action work its way back to supply coming in from 1.3021/1.2844.
Furthermore, the RSI is seen closing in on overbought levels.
H4 timeframe:
Supply from 1.2720/1.2682 ceded ground Tuesday, with price action currently retesting the latter as demand. A GBP revival today has the 127.2% Fib ext. level at 1.2783 to target, closely followed by supply at 1.2851/1.2805.
H1 timeframe:
Tuesday, despite a brief flicker of activity around 1.27, observed price action push for space above 1.2750 resistance. As you can see, though, price movement failed to sustain gains above 1.2750 and, at the time of writing, has retreated to within a stone’s throw away from 1.27.
Interestingly, bearish divergence out of overbought waters was also seen yesterday, as we journeyed into 1.2750+ territory.
Structures of Interest:
With trade recently nudging into monthly trendline resistance, this could perhaps hinder upside attempts. Despite this, crossing the 200-day simple moving average on the daily timeframe is likely to lift the pair to supply at 1.3021/1.2844, a potential location active sellers reside.
With this being the case, dip-buying strategies off 1.27 (H1) could be seen today, having noted the psychological level sharing space with H4 demand at 1.2720/1.2682.
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Support at 1.1904/1.2235 and long-term trendline resistance (1.7191) offers clear structure to work with on the monthly timeframe, with the latter recently welcoming price action.
Concerning the primary trend, lower peaks and troughs have decorated the monthly chart since early 2008, placing 1.1904/1.2235 support in a vulnerable position.
Daily timeframe:
After mingling below the 200-day simple moving average at 1.2698 since July 9, yesterday’s action squeezed above the aforesaid value. This could witness price action work its way back to supply coming in from 1.3021/1.2844.
Furthermore, the RSI is seen closing in on overbought levels.
H4 timeframe:
Supply from 1.2720/1.2682 ceded ground Tuesday, with price action currently retesting the latter as demand. A GBP revival today has the 127.2% Fib ext. level at 1.2783 to target, closely followed by supply at 1.2851/1.2805.
H1 timeframe:
Tuesday, despite a brief flicker of activity around 1.27, observed price action push for space above 1.2750 resistance. As you can see, though, price movement failed to sustain gains above 1.2750 and, at the time of writing, has retreated to within a stone’s throw away from 1.27.
Interestingly, bearish divergence out of overbought waters was also seen yesterday, as we journeyed into 1.2750+ territory.
Structures of Interest:
With trade recently nudging into monthly trendline resistance, this could perhaps hinder upside attempts. Despite this, crossing the 200-day simple moving average on the daily timeframe is likely to lift the pair to supply at 1.3021/1.2844, a potential location active sellers reside.
With this being the case, dip-buying strategies off 1.27 (H1) could be seen today, having noted the psychological level sharing space with H4 demand at 1.2720/1.2682.
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