GBPUSD buying opportunity | 29 Nov 2022
-On the D1 timeframe, we can see that GBPUSD has been ascending on a bullish trend since late September. Price is approaching the 1.22900 resistance zone that was tested multiple times before, although it still has some way to go.
-On the H4 timeframe, price came to test the resistance turned support zone at 1.18000, where a breakthrough led its ascent to the next resistance zone at 1.19500. Prices ranged between the two zones until 23 November when statements from the FOMC confirmed the Fed’s intention for softer rate hikes, while the UK released PMI data that hinted at an economic recovery. This provided the fundamental acceleration for GBPUSD to exceed the 1.19500 resistance zone which prices eventually came back down to test as the new support zone, where we forecast a bounce to the next resistance zone at 1.22900.
-Stochastic RSI has dipped into the oversold region, while the MACD has crossed over the signal line from below with a significant gap at current prices. Both technicals are displaying strong bullish signals, confirming our bullish bias.
-However, on the M30 timeframe for GBPUSD, we expect prices to come back and test the 1.19500 support zone first in the near term before playing the bounce to the next resistance zone. This is supported by the Stochastic RSI entering and exiting the overbought region which indicates a short run bearish bias
-On the H4 timeframe, price came to test the resistance turned support zone at 1.18000, where a breakthrough led its ascent to the next resistance zone at 1.19500. Prices ranged between the two zones until 23 November when statements from the FOMC confirmed the Fed’s intention for softer rate hikes, while the UK released PMI data that hinted at an economic recovery. This provided the fundamental acceleration for GBPUSD to exceed the 1.19500 resistance zone which prices eventually came back down to test as the new support zone, where we forecast a bounce to the next resistance zone at 1.22900.
-Stochastic RSI has dipped into the oversold region, while the MACD has crossed over the signal line from below with a significant gap at current prices. Both technicals are displaying strong bullish signals, confirming our bullish bias.
-However, on the M30 timeframe for GBPUSD, we expect prices to come back and test the 1.19500 support zone first in the near term before playing the bounce to the next resistance zone. This is supported by the Stochastic RSI entering and exiting the overbought region which indicates a short run bearish bias