GBP/USD Currency Pair Projecting Further Upside
Kicking things off with a look at where we are on the weekly scale, buyers appear reluctant to push beyond YTD tops. Still, the weekly chart demonstrates scope to approach as far north as resistance from $1.2767, a long-term horizontal base sharing chart space with a trendline resistance from the high of $1.4250.
Support calls for attention on the daily scale at .2272; albeit somewhat far off at the moment, resistance is visible beyond the .2640ish peaks at .2761, which happens to converge with a 1.618% Fibonacci projection at .2775 and a 61.8% Fibonacci retracement at .2765. While the trend faces northbound on both the weekly and daily timeframes—supported by the Relative Strength Index (RSI) rebounding from trendline resistance turned support drawn from the high 69.44—traders are urged to pencil in the possibility of a correction to retest the .2272 support before taking on higher levels.
As evident from the H1 timeframe, you must feel for those traders who have attempted to fade .24 and .25 since the beginning of April. Bull and Bear traps come to mind. According to chart studies here, I find it hard to believe that H1 action will deviate far from between the said psychological numbers before the UK inflation print. With that being said, following the release, support from $1.2293 (positioned just south of $1.23) could make a show, as could $1.2538 resistance. The latter is nestled just north of .25, which could see price run stops above the round number.
Charts: TradingView
Following the Bank of Canada (BoC) hitting the pause button on policy tightening, the Reserve Bank of Australia (RBA) followed suit at its previous meeting. Read More…
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