You say that upside should be limited, is this on a technical base or based at recent fundamentals ?
Thank you for your answer
The indicators of the daily chart are still well positive for now while however still showing potential negative reversals. The indicators of the s/t charts turned instead above the line this morning supporting further strength. In the hourly chart we have even a positive reversal supporting a s/t target at 1,4765
We’re still favoring the case that rebound from 1.4079 is completed at 1.4667 already. Deeper fall is expected to retest 1.4079 first. Break will extend the larger fall towards 1.3503 low.
GBPUSD is forming a sideways consolidation in a range between 1.4080 and 1.4668. As long as 1.4668 resistance holds, the sideways movement could be treated as consolidation of the downtrend from 1.5929 (Jun 18, 2015 high), further decline to 1.3700 area is still possible after consolidation
The GBP/USD pair fell rather hard during the course of the day on Monday, killing very close to the 1.40 level. We did bounce though, so it’s very likely that we are going to get a little bit of a reprieve for the British pound. At this point though, we are simply waiting to see an exhaustive candle above that we can start shorting. The market is most certainly negative, and it looks like we are getting ready to continue the longer-term downtrend but there is a certain amount of support at the 1.40 level that we may need to attack several times in order to break down.
We’d start to look for reversal signal below there. In any case, break of 1.4667 resistance is needed to be the first sign of medium term bottoming.
Further decline should be seen back to 1.3503 (2008 low). We’d start to look for reversal signal below there. In any case, break of 1.4667 resistance is needed to be the first sign of medium term bottoming.
While the 1.4664 February high caps, our downside target of 1.3502, the 2009 low, will remain intact. Below 1.3500 our primary target will be 1.2750, the 78.6% retracement. We note the TD perfected set up on the 240 minute chart
Retail Sales ex-Fuel report supported the pound. The index rose by 4.1% y/y vs. the forecast of + 3.4% and the January values at + 5.1%. Retail sales also came in better than expected, reaching 0.4% against analysts’ forecast of -0.7%.The price is finding the first support at 1.4160, the next one is at 1.4080. The price is finding the first resistance at 1.4240, the next one is at 1.4320.
The GBP has formed a shooting star at point 3 of the daily descending channel:
image Source : https://charts.mql5.com/10/706/gbpusd-d1-tickmill-ltd.png
The price has also pressed against the 1.4435 level, so as the daily candle closes with a shooting star, we shall sell the pair at current prices. As an alternative, we can put a pending order from the middle of the shooting star:
image source : https://charts.mql5.com/10/706/gbpusd-h4-tickmill-ltd.png
Interesting… What does exactly show you that on your screenshot?
I’m having a little loss right now, but I think I’ll close the deal with profit.
[B]Why[/B] do you think that, Edmund?
What features on the chart you’ve posted suggest that to you?
GBP/USD has been reacting violating over the last few weeks ever since Brexit, but this week was slightly stable without any over the top movement and finishing the week at 1.32 levels, but we see the pair continue to decline in weeks to come, but before that we might see some picking up.
GBP/USD has been bearish ever since the rates were cut and have continued to that even during this week, so the trend is strongly bearish, we can get into the trade, but we should wait for just pull back before entering again, if we aren’t already there.
The asset is flat now. I’ll set pending orders nearby the upper bound and bottom line and will see which one is gonna work. I think that gbpusd asset will go up.
GBPUSD 0.56% is now developing a corrective pattern & waiting for buying the pair & set up around 1.32 or after more descending channel breakout.