I hope you all had a good weekend, here is our first market analysis for the week ahead.
As a general rule, our focus will be on the Dollar pairs, but this is an evolving blog, so in time new elements will be added. Our intention is to give you an overview of each currency’s potential direction bias and horizontal levels. At this stage it won’t be about the specifics of getting into a particular trade, in time that will be addressed separately.
Thank you and have a good week.
Since finding soft support (a combination of bounces and breaks) at 1.4600, GBPUSD has formed four higher lows and three higher highs indicating increased buying momentum. We now have a Weekly candle that after five weeks has fractionally pushed above the average Daily range level of 1.5675 (marked in pink) and closed higher at 1.5686.
It would be logical for price to potentially pull back into the Daily 10 MA at approximately 1.5630 before attempting to continue higher, however we can’t rule out a momentum move without a retracement. Either way should bullish sentiment persist GBPUSD’s next potential resistance zone would be a combination of factors consisting of a large cycle (Weekly chart) 50. Fib level, the Weekly 200 MA and a strong level (more bounces than breaks) at 1.5900.
GBPUSD Weekly Chart
GBPUSD Daily Chart