GBPUSD Structural Resistance| Lower lows| Oversold Bounce
Evening Traders!
Today’s Technical Analysis will be on a currency pair - GBPUSD, with a strong oversold bounce, now left trading within a small range.
Points to consider,
- Macro trend bearish
- Structural resistance confluence
- Support confluence
- RSI testing resistance
- Stochastics in lower regions
- Volume influx evident
GBPUSD has been establishing consecutive lower lows as presented by the down sloping trend line. Structural resistance is in confluence with the .618 Fibonacci, a test of this level will likely increase sell pressure, confirming an S/R flip.
Support is also in confluence – with an oversold bounce, buy pressure is evident with long wicks, the 1.14 Fibonacci Extension is in clean confluence with the down sloping trend line.
The RSI is testing resistance; a break will coincide with price testing structural resistance. Stochastics on the other hand is in lower regions, can stay trading here for a while, however lots of stored momentum to the upside.
Volume influx is evident, engulfing all previous nodes, further volatility is likely after leaving the .382 and the .50 Fibonacci range.
Overall, in my opinion, GBPUSD may trade in a range before the next volatile move. Due to the macro economic situation it is likely to test lower Fibonacci extension levels.
What are your thoughts?
Please leave a like and comment,
And remember,
“Don’t blindly follow someone, follow market and try to hear what it is telling you.” ― Jaymin Shah
Today’s Technical Analysis will be on a currency pair - GBPUSD, with a strong oversold bounce, now left trading within a small range.
Points to consider,
- Macro trend bearish
- Structural resistance confluence
- Support confluence
- RSI testing resistance
- Stochastics in lower regions
- Volume influx evident
GBPUSD has been establishing consecutive lower lows as presented by the down sloping trend line. Structural resistance is in confluence with the .618 Fibonacci, a test of this level will likely increase sell pressure, confirming an S/R flip.
Support is also in confluence – with an oversold bounce, buy pressure is evident with long wicks, the 1.14 Fibonacci Extension is in clean confluence with the down sloping trend line.
The RSI is testing resistance; a break will coincide with price testing structural resistance. Stochastics on the other hand is in lower regions, can stay trading here for a while, however lots of stored momentum to the upside.
Volume influx is evident, engulfing all previous nodes, further volatility is likely after leaving the .382 and the .50 Fibonacci range.
Overall, in my opinion, GBPUSD may trade in a range before the next volatile move. Due to the macro economic situation it is likely to test lower Fibonacci extension levels.
What are your thoughts?
Please leave a like and comment,
And remember,
“Don’t blindly follow someone, follow market and try to hear what it is telling you.” ― Jaymin Shah