Technical analysis: Sterling under pressure following gov. Bailey’s comments
Higher Timeframe Technical View The technical position for GBP/USD reveals price fading long-term resistance on the weekly scale at $1.2767, boasting historical significance as far back as 2016. Consequently, GBP selling should not surprise. Support on the weekly scale is relatively nearby, nevertheless, in the shape of a trendline resistance-turned-support taken from the high of […] The post Technical analysis: Sterling under pressure following gov. Bailey’s comments appeared first on LeapRate.
Higher Timeframe Technical View
The technical position for GBP/USD reveals price fading long-term resistance on the weekly scale at $1.2767, boasting historical significance as far back as 2016. Consequently, GBP selling should not surprise. Support on the weekly scale is relatively nearby, nevertheless, in the shape of a trendline resistance-turned-support taken from the high of $1.4250. Meanwhile, on the daily chart, I see the currency pair testing the waters of support from $1.2665, which shares chart space with the nearby 50-day simple moving average at $1.2539.
Regardless of the technical structure, trend direction favours buying on both weekly and daily timeframes, with clear-cut uptrends evident.
Short-Term Technical View
As seen from the H1 timeframe, we came within striking distance of clocking the $1.26 psychological level (sat just north of support coming in at $1.2590) and have, at the time of writing, observed a moderate pullback unfold in early US hours. Should the market extend recovery gains beyond the current resistance at $1.2648, not only would this help confirm a bullish presence at daily support mentioned above at $1.2665, I see limited H1 resistance until around $1.27, which could be sufficient to encourage a short-term bid.
Charts: TradingView
Report from earlier this week: Technical analysis: Buyers to likely remain in control on USD/JPY… Read More
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