GBP/USD likely direction

The GBPUSD may have found some support at the 1.4000 level, but it may fall to the 55 day EMA, which is just above the 1.3900 level. To the upside, the 1.4200 level is still its most relevant resistance at the moment.

GBPUSD Elliott Wave View: Calling The Bounce Higher

GBPUSD Elliott Wave short-term sequence from 3/01 low (1.3709) ended as a Leading Diagonal structure in Minor wave 1 at 1.4248 high in 5 waves. Down from there, the pair is correcting that cycle in Minor wave 2 pullback in 3, 7 or 11 swings before it resumes the upside. So far pair is showing 3 swings back from the peak, which we are labeling as a Zigzag correction. Where Minute wave ((a)) ended with internal distribution of 5 waves at 1.4065 low and Minute wave ((b)) bounce ended in 3 swings at 1.4199 high.

Below from there, Minute wave (©) remain in progress with internal distribution of another 5 waves. Where Minutte wave (i) of (©) ended at 1.4133, Minutte wave (ii) of (©) ended at 1.4181. Then Minutte wave (iii) of (©) ended at 1.4059 and Minutte wave (iv) of (©) ended at 1.4095. And below from there, Minutte wave (v) of (©) remain in progress which has managed to reach the 100%-123.6% ext area of ((a))-((b)) already at 1.4018-1.3975 area. And soon as far as a pivot from 3/01 low (1.3709) remains intact pair is expected to resume the upside once again. We don’t like selling the pair into a proposed pullback and expect buyers to appear again at 1.4018-1.3975 for 3 wave bounce at least.

GBPUSD Elliott Wave 1 Hour Chart

GBP/Usd is holding above the psychological level at 1.40, the pair is missing directional strength at the moment, only next week’s macro releases will determine the pair’s next directional move.

Despite the sharp loses GBP/USD closed the week above 1.40. The pair remains vulnerable around 1.4020, which is broke to the downside might cause fresh selling pressure.

Yesterday’s strong drop in Cable has been in tandem with rising volume and shrinking open interest, although by irrelevant levels. The inconclusive activity in both open interest and volume allows spot to extend the consolidation, with gains clearly capped by the 1.4100 neighbourhood for the time being.

GBP/USD
Key levels to watch for:
Support: 1.3814 1.3890 1.3946
Resistance: 1.4079 1.4155 1.4212

GBP/USD found resistance at 1.41 and since then is consolidating in a bear flag. 1.4065 is protecting the downside which if broken, the pair will face the support area 1.4030–1.4025.

The British pound recorded an increase against the US dollar on Monday. The session started at 1.4087 and finished 43 pips higher. The chart continued to grow above the moving averages, while the relative strength index remained neutral. Overall, the upward movement is devoid of impulse, but a break of 1.4215 will reinforce positive attitudes.

GBP/USD
Key levels to watch for:
Support: 1.4015; 1.3850; 1.3655;
Resistance: 1.4315;

GBP/USD was hovering around the resistance at 1.42 today but yet unable to conquer it. The pair is showing good upward momentum but bulls will need to break and close above the 1.4189 before regaining this level.

The GBPUSD is getting very close to the 1.4200 level, which could act as resistance, but there is a better resistance at the 1.4300 zone.

GBP/USD dopped below the 1.4300 after having posted a fresh multi-month high at 1.4375 . However the pullback could meet strong support at 1.4244 (late March’s highs) and ex long term resistance that should to keep intact overall bulls. Tomorrow will bring the next key event for the Cable with the release of UK inflation data which could provide fresh direction signal.

GBP/USD recomer some ground, but yet remains capped by the resistance at 1.4244.

Last week Carney said that the uncertainties related to the Brexit could delay rate hikes, the news cause Gbp/Usd very bearish, break below the immediate support at 1.3960 could extend further on the downside.

The pound lost positions against the dollar on Wednesday. Thus the British currency completely deleted the profit recorded in the previous session and the pair tested support at 1.3917. Short-term expectations remain in favor of the dollar. Trade was open at 1.3975, and the final was 1.3927. The trend was of bearish character, and bottom of the day was hit at 1.3923.

GBP/USD
Key levels to watch for:
Support: 1.3917; 1.3888;
Resistance: 1.4096; 1.4200;

Pound / dollar resumed the downward momentum yesterday, reaching a bottom at 1.3922. Signals are bearish in the near future, especially if the price can make a clear break below 1.3917 for testing 1.3850 or lower as part of the bearish correction after the false break above 1.4275. The first resistance is at 1.4000, whose breakthrough may take the price to a neutral trading area, and the direction will become obscure. On downside, a clear break and daily closing below 1.3850 will clear the way to 1.3710 and the trendline support line. This zone is a good place for long positions with narrow stops because a clear break below it will cancel the main bullish views.

Speculation on the BOE won’t raise rates next May will continue to maintain Gbps/Usd strong downward trend. Immediate support can be found at 1.3745, break below will confirm correction movement end and further decline ahead.

The short-term technicals for GBP/USD are neutral to bearish. The pair is trying to bounce from the daily low but yet remains vulnerable below 1.3710.

The British pound recorded a modest decline against the US dollar on Wednesday. The currency pair opened at 1.3613 and the price bounced from the first resistance at 1.3655. Eventually, the pound ended at 1.3571 and if the price went down, there could be a first support test at 1.3460.