The GBP/USD pair is trading in the range of 1.2884 - a little below yesterday's high of 1.3006.
Yesterday the GBP/USD pair was moving higher and closed the day in positive area around the level of 1.3000. Today it was trading in a narrow range of 1.2950, staying close to yesterday's closing price.
Price has reversed perfectly as expected dropping to our support zone and bouncing as expected. We remain bullish above major support level at 1.2884 (61.8% of Fibonacci retracement levels).
On the hourly chart, the RSI is still calling for a strong bullish market as well as the pair remains above the moving average line EMA (100) and EMA (50) H1 (1.2900 price).
The trend is approaching major support at 1.2884 and we expect to see a nice bounce above this level to push price up to at least 1.3006 resistance.
So, a break of the session high of 1.3006 may push the pair to rise to 1.3105. The most likely range of price movement today may be hidden within the range of 1.3006 - 1.3105.
Therefore, it will be advantageous to buy above the support area of 1.3006 with the first target at 1.3105. From this point, if the pair closes above the weekly pivot point of 1.3105, the GBP/USD pair may resume it movement to 1.3204 to test the weekly resistance 2.
On the contrary, if the price closes below the minor support, the best location for the stop loss order is seen below 1.2846; hence, the price will fall into the bearish market in order to go further towards the strong support at 1.2762 to test it again. Furthermore, the level of 1.2686 will form a double bottom.
Conclusion :
- The market will probably be trading from its bottom at 1.2886 and continue to rise towards the top of 1.3006. Today, the current rise will remain within a framework of correction. However, if the pair fails to pass through the level of 1.2886, the market will indicate a bullish opportunity above the strong support level of 1.2886. Since there is nothing new in this market, it is not bearish yet. buy deals are recommended above the level of 1.2886 with the first target at 1.3006. If the trend breaks the support level of 1.3006, the pair is likely to move upwards continuing the development of a bullish trend to the levels of 1.3105 and 1.3204.
- Expected trading for today is between 1.2884 support and 1.3105 resistance.
- The expected general trend for today : Bullish.
Technical levels :
- R3: 1.3204
- R2: 1.3105
- R1: 1.3006
- PP: 1.2884
- S1: 1.2686
- S2: 1.2600
