5-wave move coupled with other technical structure held price!
GBP/USD:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Although March saw lows not seen since the 1980s, ahead of a 127.2% Fib ext. level at 1.1297, price staged an impressive recovery and regained approximately 80% of the month’s losses.
Support at 1.1904/1.2235 remains relevant in April, despite recent moves to lows. Nearby resistance can be seen in the form of a trendline formation (1.7191).
Concerning the primary trend, lower peaks and troughs have decorated the monthly chart since early 2008.
Daily timeframe:
Partially altered from previous analysis –
Supply at 1.2509/1.2372 and demand coming in from 1.2212/1.2075 remain dominant fixtures on this timeframe right now. Outside of this area we have a demand-turned supply formed at 1.2649/1.2799 which aligns with a 200-day SMA value at 26491, whereas a breach lower could have candles test the 1.15 neighbourhood: trendline supports.
The RSI indicator continues to hover around its mid-way point at 50.00.
H4 timeframe:
Following the formation of a hammer candlestick pattern, price staged a reasonably impressive recovery out of familiar demand at 1.2147/1.2257, set on top of a supply-turned demand at 1.2136/1.2049.
Additional bullish sentiment could haul price to supply fixed at 1.2622/1.2517, which merges with a 61.8% Fib retracement level at 1.2499.
H1 timeframe:
GBP/USD rushed sell-stops south of 1.22 and tested demand at 1.2121/1.2173, with an approach formed by way of a 5-wave sequence, based on wave 1 equating to wave 5, given a wave 3 extension.
This, coupled with the higher timeframes testing demand, lifted sterling higher, challenging waters north of 1.23 and closing above the 100-period SMA during yesterday’s session.
Structures of Interest:
Traders long from 1.22 concluded Tuesday on a strong footing, with risk perhaps reduced to breakeven and partial profits banked.
Buyers north of 1.23 are likely nervous – entering long into a daily supply at 1.2509/1.2372 usually has enough clout to halt upside. However, this does not mean we cannot trade higher given we are coming off monthly support at 1.1904/1.2235 as well as H4 price showing room to press higher.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Although March saw lows not seen since the 1980s, ahead of a 127.2% Fib ext. level at 1.1297, price staged an impressive recovery and regained approximately 80% of the month’s losses.
Support at 1.1904/1.2235 remains relevant in April, despite recent moves to lows. Nearby resistance can be seen in the form of a trendline formation (1.7191).
Concerning the primary trend, lower peaks and troughs have decorated the monthly chart since early 2008.
Daily timeframe:
Partially altered from previous analysis –
Supply at 1.2509/1.2372 and demand coming in from 1.2212/1.2075 remain dominant fixtures on this timeframe right now. Outside of this area we have a demand-turned supply formed at 1.2649/1.2799 which aligns with a 200-day SMA value at 26491, whereas a breach lower could have candles test the 1.15 neighbourhood: trendline supports.
The RSI indicator continues to hover around its mid-way point at 50.00.
H4 timeframe:
Following the formation of a hammer candlestick pattern, price staged a reasonably impressive recovery out of familiar demand at 1.2147/1.2257, set on top of a supply-turned demand at 1.2136/1.2049.
Additional bullish sentiment could haul price to supply fixed at 1.2622/1.2517, which merges with a 61.8% Fib retracement level at 1.2499.
H1 timeframe:
GBP/USD rushed sell-stops south of 1.22 and tested demand at 1.2121/1.2173, with an approach formed by way of a 5-wave sequence, based on wave 1 equating to wave 5, given a wave 3 extension.
This, coupled with the higher timeframes testing demand, lifted sterling higher, challenging waters north of 1.23 and closing above the 100-period SMA during yesterday’s session.
Structures of Interest:
Traders long from 1.22 concluded Tuesday on a strong footing, with risk perhaps reduced to breakeven and partial profits banked.
Buyers north of 1.23 are likely nervous – entering long into a daily supply at 1.2509/1.2372 usually has enough clout to halt upside. However, this does not mean we cannot trade higher given we are coming off monthly support at 1.1904/1.2235 as well as H4 price showing room to press higher.