Sideway Trading In GBP/USD

Technical Reports

Trading is neutral, as the pair is bounded in a range of 1.2725/2927. Hitting of resistance 1.2927 will bring stronger bounce to 1.3071. Pivot points are at: (S1) 1.2721; (P) 1.2766; (R1) 1.2796.

Overcoming of 1.2725 should widen running drop to retest key support 1.2661. While further growth is expected, upside should be limited by fibonacci level 1.3316. Price moves from 1.2661 are viewed as a consolidation.

A medium term bounce from 1.1946 should have completed at 1.4376 already, after rejection from 55 month EMA. Overcoming of 1.3316 would bring stronger rebound to 61.8% retracement at 1.3721. Downtrend resumption is forecast. This will be the preferred case while 38.2% retracement of 1.4376 to 1.2661 at 1.3316 keeps.