So far, I am maintaining a downward trend. To get a further decline, I believe that the pair needs to make a small pullback, which I have within 1.3010-1.3020. Some members of the forum traders have these forecasts of up to 1.3050 as well, so i think that this is quite possible.
Yesterday, we tried to break 1.2960 twice, however, it turned out to be quite a strong support. If the pair reaches 1.3020-1.3030 today, I expect that there will be a next attempt to break through this support level from there. In theory, only 20-30 pp remains at the top. This is already lesser than before at 1.2960.
I expect the pound to keep moving in the same direction. However, I would like to open more long deals rather than short ones. However, the current trend is more favourable for short positions, it was just enough of them, so I made a bullish move. As for me, I’m not very concerned about these current trends. In case, the price follows a different trajectory, I’ll decide what to do.
GBP/USD rebounds from the 1.2950 region.
The next key resistance level emerges at 1.3000.
Next relevant releases in the UK will be the CPI and Retail Sales.
The sterling has managed to regain some poise on Tuesday and is now lifting GBP/USD to the boundaries of 1.3000 the figure after bottoming out in the 1.2055/50 band, or 2020 lows,
The pair did not manage to consolidate below the daily support level of 1.3008 yesterday and the closing of the day was noted above this level. This means that the downside movement that has been happening for about a week has finally stopped and concurrently, we can observe an attempt to move on an upside direction. With this, the daily support level of 1.3008 will be the key for this day. So, if the price survives to remain above this level we will have new upside targets which are at 1.3052 to 1.3095. However, if it fails to stay on the said level, the downside movement will resume with targets at 1.2968 to 1.2954. So far that sums up an observation for this pair for today. May we all have a profitable day ahead!
Let’s talk about the pound/dollar currency pair based on the four-hour (H4) chart:
For the GBP/USD currency pair, the previous day was more intense in terms of trading. The price updated its low during the first half of the day and showed an upward movement afterwards which managed to gain a foothold at the top of the price channel. Now, considering that the assumptions stays the same, then the final movement of the alleged wave “c” from last night which declined from the level of 161.8% according to Fibonacci, as in the books of Elliot the zig-zag shape of wave “b” is considered to be completed. Therefore, today, the continuation of the upward movement of the first wave in the upper order of the wave “C” is expected. At the same time, we have the nearest support level which is located specifically at the level of 1.3012, while resistance level is located at 1.3079 - the level of 38.2% Fibonacci.
At the end of yesterday, the pound recovered above the previous week's low of 1.3010, which is an important mark that held the pair's growth for a month. The pound is overbought on H4, and on D1, it is showing an upward reversal. Today, CPI will be released, and one of the reasons for the change in BA's rhetoric is low inflation.
The data will reflect the post-election situation, and as you can see from the calendar, retail prices are expected to rise. Moreso, given the increase on the price of energy, we can expect forecasts to exceed the general index. I can conclude that after the start of the European session, growth will begin, and until then, the price will stay in the range of 1.3010-1.3050.
At 03:25 ET (0825 GMT), the safe-haven yen was slightly firmer against the U.S. dollar, with USD/JPY trading at 109.91, down 0.1%, while the euro was marginally lower against the dollar, with EUR/USD at $1.1120, down less than 0.1%. A preliminary reading of 2019 German GDP due at 4 AM ET (0900 GMT) may have some impact on that pair.
Although the pair managed to close the trading session with a price increase yesterday, the lower target was achieved and the sell deal was closed at a profit. Thanks to sellers, the pair managed to hit a new low, updating the local one of 1.2960. Then growth resumed. It turns out that this level has been broken for a reason, since there were buyers' stop loss orders and sellers' pending orders below. In addition, yesterday, the pair managed to break through the downward trend line, which points to strong buyers in the market. Today, I expect the pair to go down, thereby allowing sellers to make another attempt to buy. Then growth is likely to resume and the price will achieve the level of 1.3100 and continue to move in an uptrend.
The pair is not in a hurry to make the third wave down. So the likelihood of continued upward movement will remain until this wave is created.
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