Well done to those who bought wave 5 completion on FO sub 1.22
GBP/USD:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Although March saw lows not seen since the 1980s, ahead of a 127.2% Fib ext. level at 1.1297, price staged an impressive recovery and regained approximately 80% of the month’s losses.
Support at 1.1904/1.2235 remains relevant in April, despite recent moves to lows. Nearby resistance can be seen in the form of a trendline formation (1.7191).
Concerning the primary trend, lower peaks and troughs have decorated the monthly chart since early 2008.
Daily timeframe:
Partially altered from previous analysis –
Supply at 1.2509/1.2372 proved itself valid in the later stages of the session last week, after the majority of the week formed hesitant candles. Friday, as you can see, stepped lower in the form of a near-full-bodied bearish candle, testing the upper parapet of demand coming in from 1.2212/1.2075.
Monday and early Asia Tuesday saw action remain around the upper boundary of the said demand.
The RSI indicator, however, recently crossed beneath 50.00 after reaching peaks of 55.00.
H4 timeframe:
Friday had GBP/USD greet demand at 1.2147/1.2257, an area that contained downside on March 30.
Technically, early Asia is in the process of forming a hammer candlestick formation out of the said demand, which according to general interpretation, is considered a bullish signal. Note also the current demand base is reinforced by a supply-turned demand at 1.2136/1.2049.
H1 timeframe:
Recent hours saw sterling underperform on news that PM Johnson had been hospitalised and recently taken to intensive care. GBP/USD rushed sell-stops south of 1.22 and tested demand at 1.2121/1.2173, with an approach formed by way of a 5-wave sequence, based on wave 1 equating to wave 5, given a wave 3 extension.
The RSI indicator is seen bottoming ahead of oversold levels and producing a bullish divergence signal.
Structures of Interest:
Monthly support at 1.1904/1.2235 recently entered the mix, as did daily demand at 1.2212/1.2075, therefore a pop higher might be in store this week.
H1 demand at 1.2121/1.2173 (fixed between current H4 demand and supply-turned demand at 1.2147/1.2257 and 1.2136/1.2049), coupled with an approach formed in the fashion of a wave 5 completion on the H1, has sparked intraday buying of the said demand base. Traders who managed to jump aboard this move (noted in Monday’s analysis) are likely looking for a H1 close to form above 1.22, with the expectation of a run then to 1.23.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Although March saw lows not seen since the 1980s, ahead of a 127.2% Fib ext. level at 1.1297, price staged an impressive recovery and regained approximately 80% of the month’s losses.
Support at 1.1904/1.2235 remains relevant in April, despite recent moves to lows. Nearby resistance can be seen in the form of a trendline formation (1.7191).
Concerning the primary trend, lower peaks and troughs have decorated the monthly chart since early 2008.
Daily timeframe:
Partially altered from previous analysis –
Supply at 1.2509/1.2372 proved itself valid in the later stages of the session last week, after the majority of the week formed hesitant candles. Friday, as you can see, stepped lower in the form of a near-full-bodied bearish candle, testing the upper parapet of demand coming in from 1.2212/1.2075.
Monday and early Asia Tuesday saw action remain around the upper boundary of the said demand.
The RSI indicator, however, recently crossed beneath 50.00 after reaching peaks of 55.00.
H4 timeframe:
Friday had GBP/USD greet demand at 1.2147/1.2257, an area that contained downside on March 30.
Technically, early Asia is in the process of forming a hammer candlestick formation out of the said demand, which according to general interpretation, is considered a bullish signal. Note also the current demand base is reinforced by a supply-turned demand at 1.2136/1.2049.
H1 timeframe:
Recent hours saw sterling underperform on news that PM Johnson had been hospitalised and recently taken to intensive care. GBP/USD rushed sell-stops south of 1.22 and tested demand at 1.2121/1.2173, with an approach formed by way of a 5-wave sequence, based on wave 1 equating to wave 5, given a wave 3 extension.
The RSI indicator is seen bottoming ahead of oversold levels and producing a bullish divergence signal.
Structures of Interest:
Monthly support at 1.1904/1.2235 recently entered the mix, as did daily demand at 1.2212/1.2075, therefore a pop higher might be in store this week.
H1 demand at 1.2121/1.2173 (fixed between current H4 demand and supply-turned demand at 1.2147/1.2257 and 1.2136/1.2049), coupled with an approach formed in the fashion of a wave 5 completion on the H1, has sparked intraday buying of the said demand base. Traders who managed to jump aboard this move (noted in Monday’s analysis) are likely looking for a H1 close to form above 1.22, with the expectation of a run then to 1.23.
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