Aug 28 2018

GBPUSD – Pulled back after a false breakout

GBPUSD:- Pound started recovering back after a steep fall from 1.3213 to 1.2661. Earlier the pair was hovering in a downward sloping trend channel, which was broken down by the price action at 1.2850 mark on 09th August 2018. The currency pair bounced back after posting a low of 1.2661 marked on 15 August 2018. In the recent past, Pound has again entered back the range of downward sloping trend channel, which means a false breakout had happened on 9th August (even the breakout candle was not that strong). Momentum indicators are showing divergences in it, as in Moving Average Convergence Divergence (MACD) and Relative Strength Index (14 day), both have made higher highs – if compared with price action. Expected target for the current rally seem to be around 1.3000 – the trend channel resistance and the 2nd one is coming at around 1.3210 (only if the pair will able to breach 1.3000 mark).