the chart remains simple and tidy, however, there are many different tools to indicate and support our directional bias, in this case, GBP/USD
has shown extensive pressure towards the downside, however, the price was unable to penetrate the dynamic area of support 1.26000. Based on previous price action this area showed a lot of liquidity hence why became an area of institutional demand. the two previous weeks price showed a spinning top
followed by a pin bar
which rejected this region, all indicating that buying orders were being fulfilled and selling power had weakened. My short term target is 1.27000 if this area of intraday resistance is broken we could see mid-term targets of 1.29000 being met which is in confluence with the MA acting as resistance+61.8% fib extension region+ key psych level. Macro sentiment remains neutral due to focus on who will become MP
, however, if DXY
continues to weaken then GBP will gain ground and induce momentum to the upside. bullish engulfing
candle it's likely that upside momentum will continue, however, if price does not break the trendline we could see price retest that key 1.26000 zones and look for better entries.