May 04 2018

GBPUSD – Technical View

GBPUSD:-Sterling against Dollar is currently trading in its oversold range and is likely to find support near current levels. Connecting with higher lows – an upward sloping trend line is drawn, which is projecting a strong/major support for the pair(A convincing close below the trend-line support will negate the current view). After a steep fall from 1.4376 to 1.3537, yesterday(03 May 2018) the pair has formed a cautious candlestick signal(Rickshaw man Doji) on the major support area – an indication of price reversal. Momentum indicators like Relative Strength Index(14-day) and Slow Stochastic both are in highly oversold territory, which in turn – signalling the bottom is not very far from current levels. According to the analysis, I suppose that bulls can drive the pair correction/retracement towards 1.3770(1st target) and 1.3934(2nd target) mark in coming weeks.