FX.co ★ GBP/USD

Yesterday, following a minor retracement in the northern direction, the price reversed course, driving southward. This led to the formation of a comprehensive bearish candle nestled within the preceding day’s range. As the Asian session unfolds today, the price maintains a robust southward trajectory, showing proximity to the identified support level at 1.20371. Around this support level, two potential scenarios emerge. The initial scenario envisions price consolidation beneath this threshold, paving the way for further southward momentum. Should this scenario materialize, I expect a movement towards the support level at 1.18410. Near this support, I’ll be watchful for the emergence of a trading setup, instrumental in determining subsequent trade direction. While there’s also the possibility of a more distant southern target at 1.16454, according to my analysis, its realization would hinge on developing news dynamics. Upon nearing the support level at 1.20371, an alternate scenario could unfold, featuring the formation of a reversal candle and a subsequent upward price resurgence. I’ll await a return to either the resistance at 1.23374 or the resistance at 1.25480. Around these resistance levels, I’ll remain vigilant for bearish signals, in anticipation of a renewed southward price movement. In summation, my local projection for today leans towards a continued trajectory, targeting the nearest support level. My trading strategy will adapt based on prevailing market conditions.

Turning our attention to the 5-minute chart for the Pound, there’s an attempt to forge a pathway towards the lower band. To garner a stronger sign of an impending price decline, it’s preferable to observe sustained contact with the lower band. It is then crucial to assess whether the bands expand outward or elicit a unique response. Examining the situation through the lens of fractals, the price strives to establish a foothold beyond the closest descending fractal. Should this endeavor succeed, the subsequent target for a price descent lies around 1.21050, corresponding to the October 6 fractal. For any potential prospects of an upward price movement, a new proximate upward fractal would be a promising precursor. The AO indicator is exhibiting signs of a negative zone upturn; heightened momentum here would provide a more interesting signal for a Pound reduction. The key trading range revolves around horizontal support at 1.21750-1.21050 within the twenty-first figure. The near-term aim is set on revising the yearly low. Considering these considerations, the sale of this high-risk asset appears to present an opportune prospect. Wishing you successful trades, dear colleagues. Happy trading!