Nice looking price action on the GBP for a sell
During the course of last week’s session, the GBP/USD managed to recoup more than 50% of the prior week’s losses. This transported weekly price back up to the underside of a resistance level planted at 1.3301. A response from this line might force the unit down to channel support extended from the low 1.1986 in the near future.
On the daily timeframe, GBP/USD bulls chalked up five consecutive bullish candles last week. Despite this, Friday’s candle formed a strong-looking bearish selling wick (pin bar) that pierced through the top edge of supply at 1.3291-1.3233, and came within a few pips of plugging into a 50.0% resistance value pegged at 1.3344 taken from the high 1.3655.
The impact of Friday’s slightly lower-than-expected US data saw the British pound dash through offers at the 1.33 handle. As can be seen from the H4 chart (better on the M30), a high of 1.3337 was achieved before the pair began paring gains into the closing bell.
Suggestions: With weekly price still showing potential to the downside and daily price fixed within supply at 1.3291-1.3233, our bias, for the time being, remains bearish. This – coupled with H4 price trading sub1.33 in the shape of a full-bodied bearish candle – could lead to the piece selling off down to the 1.32 handle/August’s opening level at 1.3201 today/this week.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: Shorts at current price are valid without the need for further confirmation (stop loss: 1.3340).
On the daily timeframe, GBP/USD bulls chalked up five consecutive bullish candles last week. Despite this, Friday’s candle formed a strong-looking bearish selling wick (pin bar) that pierced through the top edge of supply at 1.3291-1.3233, and came within a few pips of plugging into a 50.0% resistance value pegged at 1.3344 taken from the high 1.3655.
The impact of Friday’s slightly lower-than-expected US data saw the British pound dash through offers at the 1.33 handle. As can be seen from the H4 chart (better on the M30), a high of 1.3337 was achieved before the pair began paring gains into the closing bell.
Suggestions: With weekly price still showing potential to the downside and daily price fixed within supply at 1.3291-1.3233, our bias, for the time being, remains bearish. This – coupled with H4 price trading sub1.33 in the shape of a full-bodied bearish candle – could lead to the piece selling off down to the 1.32 handle/August’s opening level at 1.3201 today/this week.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: Shorts at current price are valid without the need for further confirmation (stop loss: 1.3340).
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