GBP/USD is clearly trending up as the price is printing higher highs and higher lows. At the same time, the Pound-Dollar continues to reject the simple uptrend trendline along with the 50 Exponential Moving Average on the 4-hour timeframe. And finally, on November 23, GBP/USD broke above the ascending channel, suggesting further bullish pressure.
This is the long term uptrend, which implies that strong corrective moves down can take place. The key support is located at 1.2851, and as long as the 4h closing price remains above, the uptrend will remain valid.
Looking at the shorter-term price perspective before/if uptrend continuation occurs, the price might correct towards one of the support levels, which are located at 1.3262, 1.3195, and 1.3105. These are the levels that could be very attractive to buyers.
However, GBP/USD might continue trending up without any correctional move. The nearest upside target is located at 1.3700, which is a very strong psychological as well as technical level. It is confirmed by two Fibonacci retracement levels, 127.2% and 327.2%, as shown on the chart. While this is the key resistance, it is not the final one. Daily break and close above 1.3700 is likely to result in a further uptrend, potentially pushing the price up to 1.4000, yet another psychological resistance is confirmed by 161.8% and 527.2% Fibonacci retracement level.
Regarding the downside risk, 4h break and close below 1.3262 might initiate a consolidation phase and it will certainly take time for the uptrend to continue. Although only 4h and/or daily break and close below the 1.2851 will completely invalidate bullish forecast and GBP/AUD trend should change from bullish to bearish.
Key support levels: 1.3262, 1.3195, 1.3105, 1.2851
Key resistance levels: 1.3481, 1.3700, 1.3978
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
This is the long term uptrend, which implies that strong corrective moves down can take place. The key support is located at 1.2851, and as long as the 4h closing price remains above, the uptrend will remain valid.
Looking at the shorter-term price perspective before/if uptrend continuation occurs, the price might correct towards one of the support levels, which are located at 1.3262, 1.3195, and 1.3105. These are the levels that could be very attractive to buyers.
However, GBP/USD might continue trending up without any correctional move. The nearest upside target is located at 1.3700, which is a very strong psychological as well as technical level. It is confirmed by two Fibonacci retracement levels, 127.2% and 327.2%, as shown on the chart. While this is the key resistance, it is not the final one. Daily break and close above 1.3700 is likely to result in a further uptrend, potentially pushing the price up to 1.4000, yet another psychological resistance is confirmed by 161.8% and 527.2% Fibonacci retracement level.
Regarding the downside risk, 4h break and close below 1.3262 might initiate a consolidation phase and it will certainly take time for the uptrend to continue. Although only 4h and/or daily break and close below the 1.2851 will completely invalidate bullish forecast and GBP/AUD trend should change from bullish to bearish.
Key support levels: 1.3262, 1.3195, 1.3105, 1.2851
Key resistance levels: 1.3481, 1.3700, 1.3978
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.