The GBP/USD currency pair, on the D1 chart, was in an upward move until the 21st of October. Sellers found the price at 1.30126 attractive and started countering buying pressure. The result is a balance between demand and supply and the ensuing ranging market is still in progress.
After the high at 1.30126, the price broke through the 15 Simple Moving Average and the Momentum Oscillator broke through the zero baseline into bearish terrain. This confirmed a possible technical price reversal or early stages of a new trend.
On the 8th of November a possible support level was formed at 1.27702 and on the 18 of November a likely resistance level formed at 1.29891. Currently the price is hovering between the two levels.
If the GBP/USD breaks through the support level at 1.27702, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the lower bottom at 1.27702 and dragging it to the resistance level at 1.29891, the following targets may be calculated. The first target can be anticipated at 1.26349 (161 %). The second price target can be projected at 1.24160 (261.8%) and the third and final target may be expected at 1.20618 (423.6%).
If the bottom at 1.29891 is however broken, the possible scenario is invalidated and needs to be re-evaluated.
As long as buyers and sellers remain in balance, the above scenario reflects the outlook for the GBP/USD currency pair on the D1 timeframe.
Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.
After the high at 1.30126, the price broke through the 15 Simple Moving Average and the Momentum Oscillator broke through the zero baseline into bearish terrain. This confirmed a possible technical price reversal or early stages of a new trend.
On the 8th of November a possible support level was formed at 1.27702 and on the 18 of November a likely resistance level formed at 1.29891. Currently the price is hovering between the two levels.
If the GBP/USD breaks through the support level at 1.27702, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the lower bottom at 1.27702 and dragging it to the resistance level at 1.29891, the following targets may be calculated. The first target can be anticipated at 1.26349 (161 %). The second price target can be projected at 1.24160 (261.8%) and the third and final target may be expected at 1.20618 (423.6%).
If the bottom at 1.29891 is however broken, the possible scenario is invalidated and needs to be re-evaluated.
As long as buyers and sellers remain in balance, the above scenario reflects the outlook for the GBP/USD currency pair on the D1 timeframe.
Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.