Forex Analysis:::2021-04-12T23:27:09
Technical Analysis of GBP/USD for April 12, 2021
Overview :
- The GBP/USD pair eased from the mentioned daily high to set around 1.3750.
- The bullish potential remains limited, according to the one-hour chart, as technical indicators were unable to enter positive levels, easing from neutral readings.
- The pair is currently developing a few pips above a bearish 100 EMA, but below the longer ones, with the 100 SMA providing effective resistance around 1.3794 (50% of Fibonacci retaracment levels).
- As long as the pair holds below the level of 1.3703, the risk is incline to the downside.
- Intraday bias in GBP/USD is turned neutral as it drew support from 1.3703 and recovered.
- Some consolidations could be seen but risk stays on the downside as long as 1.3764 resistance holds. Break of 1.3764 will resume the correction from 1.3794 to 1.3823 key resistance turned support.
- However, firm break of 1.3823 will suggest that the correction has completed, and bring stronger rise to 1.3863 resistance first.
- Accordingly, the pair is still in the uptrend from the area of 1.3728 and 1.3750. The GBP/USD pair is trading in a bullish trend from the last support line of 1.3728 towards the first resistance level at 1.3823 in order to test it.
- This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Now, the pair is likely to begin an ascending movement to the point of 1.3863 and further to the level of 1.3918.
- The level of 1.3918 will act as second resistance and the double top is already set at the point of 1.3918.
- At the same time, if a breakout happens at the support levels of 1.3669 and 1.3633 , then this scenario may be invalidated. But in overall, we still prefer the bullish scenario.
Mourad El Keddani
Analyst InstaForex
