GBP/USD (daily chart) has been up for five consecutive trading
sessions after price touched a low of 1.5026 on July 15 and closed at
1.5097, less than 20 pips below the uptrend line (as shown on the daily
chart). On July 17 we had a “high-wave” candlestick and price touched a
high of 1.5266 and a low of 1.5078 (range of 188 pips). A “high-wave”
candlestick indicates indecision in terms of direction, with long upper
and lower shadows attached to a small real body. The resistance of
1.5266 is close to 1.5290/5300, which is a key resistance/support level
and also close to the 50% Fib retracement level.
From July 17 to July 19, price has been capped below 1.5300 for three
trading sessions. Today the pair finally broke above 1.5300 to test
1.5400/10, which is close to the 61.8% Fib retracement level and the
April 11 high. If price can keep up the upside momentum and clear the
1.5400 barrier, it could test the EMA 200 at around 1.5480/5500. If the
1.5400/10 level serves as strong resistance, the pair may turn down and
find support at 1.5260/5300, 1.5220 (July 11 high) and potentially
retest the uptrend line. The daily RSI is breaking above 50, and the
MACD is making a “golden cross” from below zero.
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