GBP / USD technical outlook
- GBP / USD posted a weekly reversal to 2018 highs
- Targeting support below 13,700 in the short term
GBP / USD to trade lower
Last week, GBP/USD posted a weekly reversal candle at a significant long-term level. The high price of the candle was only a few pips above the strongest weekly close of 2018; an important macro summit as it then led to the lowest levels in decades.
The key long term resistance reversal week is reason enough to look for short term weakness but the break back inside the mid term channel dating back to September.
Often times when the price leaves the limits of a channel it leads to an explosion (this time to the high of 2018), and when this movement is reversed inside the channel the trend is downward to develop. at least on the other side. chain. The other side of the channel is also in confluence with the March trendline.
From a tactical standpoint, a close above the channel (~ 14,050 and rising with the channel) would reduce bearish trading bias. On the downside, there are currently around 300 pips of coin until the lower parallel of the channel is reached around the 13635 level (and rising). This makes for a decent risk / reward scenario.
Recommended by Paul Robinson
View the first quarter forecast in GBP
GBP / USD weekly chart (weekly reversal around 2018 high)
GBP / USD daily chart (looking across the channel)
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— Written by Paul Robinson, Market Analyst
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