GBPUSD bears turning pale inside falling wedge, 1.3280 in focus
Despite refreshing yearly low, GBPUSD funnels down to the break-point of a bullish chart pattern called a falling wedge. Adding importance of the 1.3280 resistance level is the 61.8% Fibonacci retracement (Fibo.) of September 2020 to February 2021 upside and 10-DMA. Should the quote crosses the 1.3280 hurdle, theory suggests 1.3960 as a target. However, lows marked during September and July, respectively around 1.3410 and 1.3570, will challenge the bulls on their way up. Adding to the upside filters is October’s peak surrounding 1.3835.
In a case where the cable drops refrains from recovery, the stated bullish formation’s support line can test the sellers around 1.3160. Following that, December 2020 bottom near 1.3130 and the mid-November swing low of 1.3100 will be an easy hit. Though, the 1..3000 psychological magnet, comprising the 78.6% Fibo. level, will be a tough nut to crack for the GBPUSD bears. It’s worth noting that the RSI has been hugging to the oversold territory since November-end, which in turn suggests a corrective pullback is brewing.
In a case where the cable drops refrains from recovery, the stated bullish formation’s support line can test the sellers around 1.3160. Following that, December 2020 bottom near 1.3130 and the mid-November swing low of 1.3100 will be an easy hit. Though, the 1..3000 psychological magnet, comprising the 78.6% Fibo. level, will be a tough nut to crack for the GBPUSD bears. It’s worth noting that the RSI has been hugging to the oversold territory since November-end, which in turn suggests a corrective pullback is brewing.