You are here: Home > articles > Forex > Technical Analysis – GBPUSD stands around 22-month high; strongly bullish
Technical Analysis – GBPUSD stands around 22-month high; strongly bullish
April 17, 2018 7:26 amVideo
Latest News
- EUR/USD and GBP/USD: Technical analysis on April 9 April 9, 2024
- Bitcoin: Target for this bull cycle is $300,000 April 8, 2024
- The dollar has laid out its trump cards, it’s now the euro’s turn April 8, 2024
- GBP/USD. Analysis for April 8th. The pound remains expensive despite everything April 8, 2024
- Could the ECB adopt its June 2022 playbook and preannounce a rate cut? – Preview April 8, 2024
- Trading Signals for GBP/USD for April 8-10, 2024: buy if breaks 1.2634 (3/8 Murray – symmetrical triangle) April 8, 2024
- Trading Signals for EUR/USD for April 8-10, 2024: buy above 1.0833 (3/8 Murray – 21 SMA) April 8, 2024
- EUR/USD. Analysis for April 8th. The euro will continue to decline April 8, 2024
- US CPI data unlikely to ease sticky inflation worries, but will markets care? – Preview April 8, 2024
- Technical Analysis – AUDUSD surpasses SMAs within trading range April 8, 2024
- Weekly Technical Outlook – USDJPY, EURGBP, USDCAD April 8, 2024
- Video market update for April 08, 2024 April 8, 2024
- US dollar enjoys gains April 8, 2024
- Weekly Technical Outlook: 08/04/2024 – USDJPY, EURGBP, USDCAD April 8, 2024
- EUR/USD and GBP/USD: Technical analysis on April 8 April 8, 2024
- Euro could tumble after ECB meeting April 8, 2024
- EUR/USD. April 8th. Preparations for the ECB meeting are in full swing April 8, 2024
- GBP/USD. April 8th. Nonfarm Payrolls did not help the dollar April 8, 2024
- Technical Analysis – US 500 index slides beneath rising trend line April 8, 2024
- Overview of the GBP/USD pair. April 8th. US inflation may present a new unpleasant surprise April 8, 2024
GBPUSD was one of the best-performing currencies on Monday, which raced above the 1.4300 handle, extending a rally that has not created a retracement in the past seven trading days. The cable reached a fresh 22-month high of 1.4362 during today’s Asian session, signaling that the pair is ready for a bullish run and point to more strength in the market.
In the daily timeframe, prices rebounded off the mid-level of the Bollinger band (20-day SMA) and the 40-day simple moving average (SMA) and extended their rally, and based on the technical indicators, momentum is to too strong to provide a sustained move higher. The RSI indicator is approaching the overbought zone and is touching the 70 level, while the MACD oscillator is holding above its red-trigger line.
If price action remains above the 1.4345 (immediate support), taken from the high on January 25, there is scope to test the 50.0% Fibonacci retracement level of 1.4575 of the significant downward movement on the weekly timeframe from 1.7180 to 1.1980. Clearing this key level would see additional gains towards 1.4770. This is considered to be a strong resistance area which has been tested a few times in the past.
If the price falls below the 1.4345 – 1.4245 support zone, then the focus would shift to the downside towards the 20- and 40-SMAs at 1.4136 and 1.4017 respectively. In case of a successful drop below these levels, it could open the door for the 1.3890 support followed by the 23.6% Fibonacci mark of 1.3815 of the upleg from 1.2100 to 1.4345 could act as critical support.
Related Posts: