Lower moves from 1.26? 1.25 likely to pack a punch!
GBP/USD:
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 remains in motion in June, with the month currently recording gains of more than 1.7% despite facing long-term trendline resistance (1.7191).
Concerning the primary trend, lower peaks and troughs have decorated the monthly chart since early 2008.
Daily timeframe:
Recent developments witnessed buyers and sellers butt heads around the 200-day simple moving average at 1.2682. Sellers held the moving average in strong form, producing a Japanese shooting star candlestick pattern, considered a bearish signal.
Another day dominated by sellers shifts focus to demand at 1.2192/1.2361, an area glued to the top edge of monthly support and considered the decision point to crack 1.2647 (April 14 high). Yet, seeking higher ground moves supply at 1.3021/1.2844 into the firing range.
H4 timeframe:
H4 price failed to muster enough oomph to maintain a presence above resistance at 1.2629, in spite of testing the base as support. This is likely to see candle action work its way to demand at 1.2476/1.2526, an area boasting a close connection with a 38.2% Fib ret level at 1.2534.
Should 1.2476/1.2526 fail, neighbouring demand rests at 1.2374/1.2427, bringing with it a trendline support (1.2075).
H1 timeframe:
Crossing under 1.26 and retesting the level as resistance amid US trade Tuesday, may see further softening today to 1.25. This is largely due to the chart being starved of support until 1.25. The upper demand (upper blue arrow) around 1.2565 was likely consumed yesterday. Lower demand (lower blue arrow) around 1.2535 gives the impression buy orders were collected soon after forming.
Structures of Interest:
The retest at 1.26 is interesting. Sellers are likely to pack a punch here, backed by all three higher timeframes exhibiting scope to press lower.
1.25 makes for an interesting downside target as well as a platform to consider buying opportunities, having seen the round number located within H4 demand at 1.2476/1.2526.
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 remains in motion in June, with the month currently recording gains of more than 1.7% despite facing long-term trendline resistance (1.7191).
Concerning the primary trend, lower peaks and troughs have decorated the monthly chart since early 2008.
Daily timeframe:
Recent developments witnessed buyers and sellers butt heads around the 200-day simple moving average at 1.2682. Sellers held the moving average in strong form, producing a Japanese shooting star candlestick pattern, considered a bearish signal.
Another day dominated by sellers shifts focus to demand at 1.2192/1.2361, an area glued to the top edge of monthly support and considered the decision point to crack 1.2647 (April 14 high). Yet, seeking higher ground moves supply at 1.3021/1.2844 into the firing range.
H4 timeframe:
H4 price failed to muster enough oomph to maintain a presence above resistance at 1.2629, in spite of testing the base as support. This is likely to see candle action work its way to demand at 1.2476/1.2526, an area boasting a close connection with a 38.2% Fib ret level at 1.2534.
Should 1.2476/1.2526 fail, neighbouring demand rests at 1.2374/1.2427, bringing with it a trendline support (1.2075).
H1 timeframe:
Crossing under 1.26 and retesting the level as resistance amid US trade Tuesday, may see further softening today to 1.25. This is largely due to the chart being starved of support until 1.25. The upper demand (upper blue arrow) around 1.2565 was likely consumed yesterday. Lower demand (lower blue arrow) around 1.2535 gives the impression buy orders were collected soon after forming.
Structures of Interest:
The retest at 1.26 is interesting. Sellers are likely to pack a punch here, backed by all three higher timeframes exhibiting scope to press lower.
1.25 makes for an interesting downside target as well as a platform to consider buying opportunities, having seen the round number located within H4 demand at 1.2476/1.2526.
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