Jump to content

GBP/USD Technical Analysis: Snapping Downtrend May Prove Difficult


Recommended Posts

GBP/USD TECHNICAL OUTLOOK

  • Cable broke a trend-line and congestive pattern
  • Overall, though, quite heavy with trend/tone negative
GBP/USD Technical Analysis: Snapping Downtrend May Prove Difficult

GBP/USD TECHNICAL ANALYSIS: SNAPPING DOWNTREND MAY PROVE DIFFICULT

Cable is trying to turn the corner and at least recover from the depts of the past couple of months’ worth of selling, but that may prove difficult as the year draws towards its conclusion. The past couple of weeks brought a slowing in downward momentum that made for a falling wedge type pattern.

The break out of the pattern on Friday and rally above a six week trend-line hinted towards the idea that we may see GBP/USD recover above the lower parallel from July and rally a bit from here. It still may, but it will need to get into gear soon or else the generally poor tone and downward trend will prove to be too much to turn things around.

In the event we see price hold above the trend-lines from early November and the wedge, we could see Cable rally towards the 11/30 high, 11/10 low. The area around 13360 has proven itself as a meaningful level to watch. Perhaps a rally to this point is all that can develop, but if not a break above could ignite more strength.

If Friday’s break turns out to be nothing more than a blip in the context of the ongoing downtrend, then the first level to watch for invalidation of the trend-line break is the recent low at 13161. There is a minor level at 13134, followed by another minor level at 12853.

 

GBP/USD DAILY CHART

gbp/usd daily chart

GBP/USD 4-HR CHART

gbp/usd 4-hr chart

GBPUSD Charts by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

 

Written by Paul Robinson, Market Analyst, 13th December 2021. DailyFX

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • In a bid to ensure the widespread use of cryptocurrency, certain platforms have come up with good initiatives to boost enthusiasm in cryptocurrency.  Bitget in an effort to achieve this have come up with an initiative known as the COO apprenticeship, this is in link with the platform’s #Blockchain4Youth initiaitve. Basically, the program requires eligible participants to collaborate closely with the team while gaining valuable leadership experience in the process. Similarly, they are also required to conduct market research as well as assist in the implementation of market strategies.  The prerequisites for participating are relatively easy; excellent communication skills, passion for crypto, blockchain tech as well as availability for a 3 month commitment with the possibility of travelling to Dubai.  The benefits tagged along this are overwhelming, you get gifts from Bitget in the form of monthly $BGB airdrops and Bitget Merchandise. Apart from being rewarded monetarily, the work experience, a widened horizon etc are part of the perks that come with this program.  However, the targeted regions for the program are; France, Germany, italy, Spain, Portugal and the UK. This is indeed a worthwhile opportunity for those that can participate.
    • GX Uranium ETF (URA) Elliott Wave Analysis  Function - Counter trend Mode - Corrective Structure - Emerging Zigzag Position - Red wave (C) of blue 4  Direction - Red wave (C) of blue 4 is still in play Details - Price broke blow 30. Wave (C) was confirmed by the break below 29.26. Should extend toward 25.94. The GX Uranium ETF is an exchange-traded fund (ETF) that focuses on investing in companies involved in the uranium industry. Uranium is a key component in nuclear power generation, and its demand is influenced by factors such as global energy needs, environmental concerns, and government policies regarding nuclear power.   Recent market movements have seen the GX Uranium ETF undergo a bearish correction, with a decline exceeding 5% over the current trading week. This downturn commenced on February 1st, 2023, and is anticipated to persist in the short term before encountering a support level, heralding the onset of renewed upward momentum. Notably, this correction unfolds within the broader context of a bullish trend that commenced in March 2022. Despite enduring an over 8-month pullback between November 2021 and July 2022, the ETF has steadily ascended, reaching its loftiest valuation since April 2014. Consequently, post the prevailing retracement, a resumption of the bullish trajectory is anticipated.   Analyzing the daily time frame reveals a discernible bullish impulse of the cycle degree (marked in blue) after the supercycle wave (b). The termination of the 3rd wave - designated as blue wave 3 - occurred in February 2023, characterized by a diagonal pattern, followed by the onset of the corresponding 4th wave. This 4th wave manifests as a zigzag pattern, navigating through wave (C) after completing wave (B) via an expanding diagonal. To maintain the integrity of the overall impulse structure, the 4th wave - delineated as blue wave 4 - must remain above the critical level of 24.36. Expectations converge on buyers eagerly awaiting the conclusion of wave (C) to propel the bullish momentum into the 5th wave. Examining the H4 chart illuminates the sub-waves of (A)-(B)-(C) and the emergence of wave (C). The initial target for wave (C) aligns with the 100% extension of wave (A) at 25.94, slightly above the psychological barrier of 25. Traders are thus advised to anticipate the culmination of wave (C) within the 25.94-25 zone, paving the way for subsequent rallies.   Technical Analyst : Sanmi Adeagbo Source : Tradinglounge.com get trial here!        
    • Greetings All I am curious as to how an instrument's price varies (oscillates) over time when (according to the platform) there has not been any volume traded on the instrument?   Insight will be greatly appreciated.  
×
×
  • Create New...
us