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 as we transition into June. Neighbouring resistance, should we see an attempt at recovery, can be found in the form of a trendline (1.7191). A violation of support, nevertheless, puts forward a 127.2% Fib ext. level at 1.1297.
Concerning the primary trend, lower peaks and troughs have decorated the monthly chart since early 2008.
Daily timeframe:
Partially altered from previous analysis -
A few pips south of supply at 1.2649/1.2799 (prior demand), a double-top pattern formed at 1.2647, with May 13 consuming the neckline (April 21 low 1.2247) and establishing a potential take-profit target (purple) around 1.1855.
Recent trade observed a retest at the double-top neckline at 1.2247 unfold. Sellers have so far taken a back seat as price closed a touch off highs at 1.2506 yesterday.
Although this positions the double-top pattern in weak light, sellers may still make a showing. This offers traders an opportunity to sell this market at a healthier risk/reward ratio, as protective stop-loss orders are generally positioned above pattern peaks: 1.2647, or in this case maybe even above current supply at 1.2799.
H4 timeframe:
Partially altered from previous analysis -
After coming within touching distance of healthy demand at 1.2170/1.2204 and trendline support (1.2075), GBP/USD entered into a strong phase of buying, with Monday greeting trendline resistance (1.2163) and a 161.8% Fib ext. level at 1.2491, positioned just ahead of resistance at 1.2520.
H1 timeframe:
Albeit following a period of hesitation around 1.24, Monday saw US trade lift GBP/USD above the noted round number, above 1.2450 and into the walls of supply at 1.2511/1.2482 (houses the 1.25 handle). Note recent buying also hauled the RSI into overbought territory.
Structures of Interest:
As noted in recent analysis, monthly holds 1.1904/1.2235, despite positioned against the major trend.
Sellers on the daily timeframe, basing analysis on the double-top pattern, still have a hand in the fight despite offering a fragile outlook right now.
Buyers and sellers on the H4 timeframe are seen squaring off at trendline resistance/161.8% Fib ext. level at 1.2491. Note resistance at 1.2520 may also play a role.
H1 supply at 1.2511/1.2482, along with the round number 1.25, holds ground at the moment. In spite of the base uniting with H4 resistance structure, a whipsaw to H4 resistance at 1.2520 is a potential intraday scenario to watch for today. A rejection here may encourage a wave of selling, with 1.2450 set as an initial target on the H1.
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 as we transition into June. Neighbouring resistance, should we see an attempt at recovery, can be found in the form of a trendline (1.7191). A violation of support, nevertheless, puts forward a 127.2% Fib ext. level at 1.1297.
Concerning the primary trend, lower peaks and troughs have decorated the monthly chart since early 2008.
Daily timeframe:
Partially altered from previous analysis -
A few pips south of supply at 1.2649/1.2799 (prior demand), a double-top pattern formed at 1.2647, with May 13 consuming the neckline (April 21 low 1.2247) and establishing a potential take-profit target (purple) around 1.1855.
Recent trade observed a retest at the double-top neckline at 1.2247 unfold. Sellers have so far taken a back seat as price closed a touch off highs at 1.2506 yesterday.
Although this positions the double-top pattern in weak light, sellers may still make a showing. This offers traders an opportunity to sell this market at a healthier risk/reward ratio, as protective stop-loss orders are generally positioned above pattern peaks: 1.2647, or in this case maybe even above current supply at 1.2799.
H4 timeframe:
Partially altered from previous analysis -
After coming within touching distance of healthy demand at 1.2170/1.2204 and trendline support (1.2075), GBP/USD entered into a strong phase of buying, with Monday greeting trendline resistance (1.2163) and a 161.8% Fib ext. level at 1.2491, positioned just ahead of resistance at 1.2520.
H1 timeframe:
Albeit following a period of hesitation around 1.24, Monday saw US trade lift GBP/USD above the noted round number, above 1.2450 and into the walls of supply at 1.2511/1.2482 (houses the 1.25 handle). Note recent buying also hauled the RSI into overbought territory.
Structures of Interest:
As noted in recent analysis, monthly holds 1.1904/1.2235, despite positioned against the major trend.
Sellers on the daily timeframe, basing analysis on the double-top pattern, still have a hand in the fight despite offering a fragile outlook right now.
Buyers and sellers on the H4 timeframe are seen squaring off at trendline resistance/161.8% Fib ext. level at 1.2491. Note resistance at 1.2520 may also play a role.
H1 supply at 1.2511/1.2482, along with the round number 1.25, holds ground at the moment. In spite of the base uniting with H4 resistance structure, a whipsaw to H4 resistance at 1.2520 is a potential intraday scenario to watch for today. A rejection here may encourage a wave of selling, with 1.2450 set as an initial target on the H1.