GBPUSD Daily Forex Analysis
This post is all about today’s analysis of GBPUSD. The GBPUSD Forex Trading Analysis will help the traders to get the ideas of trading this pair.
GBPUSD Long Price Breakout
The GBPUSD pair plummeted to a fresh 4-week low, printing 1.2935 before bouncing modestly, to the current 1.2960, still under selling pressure. During the past Asian session, news that the housing sector suffered a sharp setback with the Brexit undermined the Pound, which accelerated its decline after London opening.
GBPUSD Forex Trading Analysis
GBPUSD – 1.3016. Despite y’day’s rally in EURUSD, cable went through a roller-coaster session instead. Price jumped at Asian open to 1.3090 n fell back to 1.3025 in Europe b4 rising to 1.3095 in NY but later tanked to 1.2992. Technically, the 4 hours chart shows that the price has accelerated its decline after failing to overcome a bearish 20 SMA, while the Momentum indicator lacks directional strength within neutral territory. The RSI however, accelerated lower and stands around 36, supporting a downward extension on a break below the mentioned daily low, towards 1.2880, the next support.
GBPUSD Long Buy Setup
GBPUSD saw a minor recovery yesterday but this had no impact on the otherwise very bearish chart, the market remains under pressure following the recent break down from its triangle. Initial support is 1.2944, the 78.6% retracement, and the 1.2797/50 July low and Fibo. If we are correct than we should see rallies remain capped circa 1.3225 and key resistance is now the top of the triangle at 1.3403. Intraday rallies are indicated to terminate circa 1.3100 (GBPUSD Forex Trading Analysis).
GBPUSD Took A Long Position
A sustained break below 1.2960-50 immediate support has the potential to drag the pair immediately towards 1.2900 round figure mark before the pair aims towards testing 1.2850 important support. On the flip side, any recovery attempt is likely to confront immediate resistance near 1.3000 psychological mark. Further recovery above this immediate resistance might now be capped at 1.3020-25 resistance zone.
GBPUSD Bigger Gartley Pattern
The British Pound showed a tepid response against its major peers after the Royal Institute of Chartered Surveyors (RICS) released their survey on UK’s house price growth. In July, the average cost of housing increased 5 percent versus 6 percent estimated. June’s reading was revised lower to 15 percent from 16 percent. There were two extreme readings in this survey. The first was that dwelling price inflation slowed to the lowest measurement recorded since April 2013, a 3 year low. The second was that the month to month decline was the largest since April 2012. Price bashed below the smaller bullish Shark (posted earlier this week) making that pattern invalid. Now I am looking at this bigger Gartley pattern. Let’s see how price reacts to the PRZ @ 1.2925 (GBPUSD Forex Trading Analysis).
However, the BoE Agents’ Survey, released yesterday, provided compelling evidence for the easing action taken last week with the report concluding that companies expected a “negative effect from the vote on hiring, investment and turnover” with a “significant minority” deferring investment decisions.