Technical analysis of GBP/USD for May 11, 2023
May 11, 2023 12:22 amVideo
Latest News
- 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
- Overview of the EUR/USD pair on April 8, 2024 April 8, 2024
- Market Comment – Stocks climb after sizzling US jobs report April 8, 2024
- Weekly forecast based on simplified wave analysis of GBP/USD, AUD/USD, USD/CHF, EUR/JPY, EUR/GBP, and the US dollar index April 8, 2024
- Weekly forecast based on simplified wave analysis of EUR/USD, USD/JPY, GBP/JPY, USD/CAD, NZD/USD, and Gold April 8, 2024
Overview:
The GBP/USD pair has faced strong support at the level of 1.2585 because resistance became support. So, the strong resistance has been already faced at the level of 1.2678 and the pair is likely to try to approach it in order to test it again.
The level of 1.2585 represents a weekly pivot point for that it is acting as minor support this week. Furthermore, the EUR/USD pair is continuing to trade in a bullish trend from the new support level of 1.2585.
Currently, the price is in a bullish channel. According to the previous events, we expect the EUR/USD pair to move between 1.2585 and 1.2678.
Also, it should be noticed that the double top is set at 1.2678. Additionally, the RSI is still signaling that the trend is upward as it remains strong above the moving average (100).
This suggests the pair will probably go up in coming hours. Accordingly, the market is likely to show signs of a bullish trend.
In other words, buy orders are recommended above 1.2585 with the first target at the level of 1.2678. If the trend is be able to break the double top at the level of 1.2678, then the market will continue rising towards the weekly resistance 1 at 1.2718.
On the other hand, if the GBP/USD pair fails to break through the resistance level of 1.2678 this week, the market will decline further to 1.2585.
The pair is expected to drop lower towards at least 1.2585 with a view to test the weekly pivot point. Also, it should be noted that the weekly pivot point will act as minor support today at the price 1.2585.
Indicators :
This would suggest a bearish market because the moving average (100) is still in a positive area and does not show any trend-reversal signs at the moment. EMAs gives more weight to the most recent periods, because moving average is quick moving and works well at showing recent price swings. On the other hand, Simple Moving Average (SMA) displays a smooth chart which which removes most false signals.
Moreover, with using SMAs, you can know whether a pair is trending up or trending down. Consequently, if you want to obtain a clearer signal of whether the pair is trending up or down if you combine two or more moving averages because simple and exponential are the two major types of moving averages.
Signals:
The trend is still bullish as long as the price of 1.2585 is not broken. Thereupon, it would be wise to buy above the price of at 1.2585 with the primary target at 1.2678. Then, the GBP/USD pair will continue towards the second target at 1.2718 . The breakdown of 1.2585will allow the pair to go further down to the prices of 1.2492.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: