GBPUSD correction continues to form from resistance
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As Ralph Benjamin mentioned in his previous analysis, GBPUSD is currently in a corrective recovery phase, receiving strong support at 1.2400. Currently GBPUSD is trading stable at 1.2440. It seems like GU is trying to recover after the previous strong correction.
The H4 setup shows strong resistance from the bear market. In a downtrend, resistance plays an equal role so it would not be surprising if we expected the pair to fall further. According to statistics, the strongest volatility is after a false breakout. Theoretically, a breakout and consolidation below 1.2485 could cause a sharp decline to the liquidity zones indicated from the chart.
In general, in the current trend, the possibility of price increase is possible, but it is still difficult for investors to push prices back up sharply. Given the current general trend, it could hold for long as the coin nears resistance. There is evidence that once a resistance level is reached, it will continue its downward movement, as indicated by the unchanged EMA.
Fundamentally and technically the market is showing the absence of bulls, so we can expect the next market correction scenario towards the target of 1.22235. And you?
As Ralph Benjamin mentioned in his previous analysis, GBPUSD is currently in a corrective recovery phase, receiving strong support at 1.2400. Currently GBPUSD is trading stable at 1.2440. It seems like GU is trying to recover after the previous strong correction.
The H4 setup shows strong resistance from the bear market. In a downtrend, resistance plays an equal role so it would not be surprising if we expected the pair to fall further. According to statistics, the strongest volatility is after a false breakout. Theoretically, a breakout and consolidation below 1.2485 could cause a sharp decline to the liquidity zones indicated from the chart.
In general, in the current trend, the possibility of price increase is possible, but it is still difficult for investors to push prices back up sharply. Given the current general trend, it could hold for long as the coin nears resistance. There is evidence that once a resistance level is reached, it will continue its downward movement, as indicated by the unchanged EMA.
Fundamentally and technically the market is showing the absence of bulls, so we can expect the next market correction scenario towards the target of 1.22235. And you?
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Comment:
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
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