Jan 23 2019

GBPUSD :- Technical Commentary

GBPUSD:- Sterling from the past few days is rallying continuously after the trough marked on 12 Dec 2018 at 1.2476. A tool used in technical analysis called Andrew’s Pitchfork is applied on the daily frequency chart. Andrew’s Pitchfork tells us that the pair is trading close to its upper zone, which seems to be a strong supply zone. Earlier the pair made many attempts towards that resistance and at every single attempt price reversed to the median line, that’s why the zone is supposed to be a strong resistance zone. Momentum indicators are inching towards their overbought zones (suggesting a limited upside)with RSI (14 day) and Stochastic slow with their readings at 62 and 74 respectively. Price action below 200 day Simple Moving Average is self a indication of bear trend, at present the average is at 1.3056 mark. According to technical studies, upside seems limited towards 1.3050-1.3150 while on the lower side a wide move towards 1.27-1.2650 seems open.