GBPUSD – Market Overview
British Pound/U.S. Dollar FX:GBPUSD
The market could not develop the upward movement to 1.29000 level. We got an attempt to break 1.27000 resistance level and now we can see how the price reverses in this zone. RSI confirms the price reversal and MACD histogram is going to confirm a downward movement.
Will it be the beginning of a new downward movement to 1.25000 support level or just a short term retracement? We will see. The market still keeps potential for breaking above 1.27000 resistance and moving upward. MACD lines support this variant. In spite of DMI is bearish ADX line falls. It tells us that bears are not so active and probably they won’t have the power to push the market lower.
We have to watch for the price action at the local swing high and low. If the price breaks the local swing low – it will confirm the downward movement to 1.26000 support level . If the price breaks the local swing high, it will be a good confirmation for the upward movement with a target at 1.29000 resistance.
For now, it’s better to stay away from this market and wait for more signals confirming the direction of the market movement.
What do you think about possible trading opportunities? Share your ideas below this post!
Source: TW DLavrov