You are here: Home > articles > Forex > Technical Analysis – GBPUSD drops to lowest in 5 months; outlook still bearish
Technical Analysis – GBPUSD drops to lowest in 5 months; outlook still bearish
May 22, 2018 7:26 amVideo
Latest News
- The dollar is in control April 19, 2024
- Analysis of the GBP/USD pair on April 18, 2024 April 18, 2024
- Analysis for EUR/USD pair on April 18th. Dull ending to a dull week April 18, 2024
- USD/JPY: Simple trading tips for novice traders on April 18th (US session) April 18, 2024
- GBP/USD: Simple trading tips for novice traders on April 18th (US session) April 18, 2024
- EUR/USD: Simple trading tips for novice traders on April 18th (US session) April 18, 2024
- GBP/USD: trading plan for the US session on April 18th (analysis of morning deals) April 18, 2024
- Trading Signals for EUR/USD for April 18-20, 2024: buy above 1.0641 (21 SMA – 2/8 Murray) April 18, 2024
- Bitcoin slides ahead of halving event – Crypto News April 18, 2024
- Trading Signals for BITCOIN (BTC/USD) for April 18-20, 2024: buy above $62,500 or $63,037 (4/8 Murray – rebound) April 18, 2024
- GBP/USD. April 18th. Andrew Bailey did not clarify the situation on QE April 18, 2024
- Trading Signals for GOLD (XAU/USD) for April 18-20, 2024: buy above $2,375 (6/8 Murray – 21 SMA) April 18, 2024
- Technical Analysis – Netflix stock moves within narrow range ahead of earnings April 18, 2024
- Technical Analysis – GBPUSD tries to recoup some losses April 18, 2024
- USD/JPY in crisis April 18, 2024
- EUR/USD: trading plan for US session on April 18. EUR gets stuck at 1.0686 April 18, 2024
- Fed to keep policy tight for longer than markets view April 18, 2024
- Technical Analysis – BTCUSD drops to 6-week low as halving looms April 18, 2024
- Midweek Technical Look – EURUSD, US 500, WTI April 18, 2024
- Technical Analysis – AUDJPY pulls back but stays in uptrend April 18, 2024
GBPUSD had a deep fall during Monday’s trading period as it dropped below the narrow range of 1.3450 to 1.3600, which had been holding over the previous two weeks. The price plunged to a new five-month low of 1.3389, however, price action is at the moment taking place not far above this trough.
In the daily timeframe based on technical indicators, momentum is too weak to provide a sustained move higher. The RSI indicator is flattening in the oversold level near the 30 barrier, while the MACD oscillator is trying to jump above its trigger line to create a bullish cross in the negative territory.
If price action remains below the 1.3450 strong resistance level, there is scope to test the 1.3290 support level. Clearing this key level would see additional losses towards the next barrier of the 50.0% Fibonacci retracement level of the upleg from 1.2100 to 1.4345, around 1.3240. A fall below it would see prices re-testing the 1.3040 hurdle, identified by the November 2017 low.
However, if the 1.3450 resistance fails, then the focus would shift to the upside towards the 38.2% Fibonacci mark of 1.3510, which stands in the middle of the aforementioned narrow range (1.3450 – 1.3600). If this level is breached, it would increase upside pressure and challenge the 1.3600 handle, which holds near the 20-day simple moving average (SMA). Moving higher, immediate resistance could be found at 1.3710, taken from the low on March 1.
To sum up, GBPUSD has been negative since breaking below the sideways channel and is expected to remain as long as price action is taking place below 1.3450.
Related Posts: