Oct 13 2017

Technical View – GBPUSD

The daily chart shows a massive bullish outside day candle. It engulfs price action see over the last two days and hence indicates the rally from the Oct 6 low of 1.3027 is likely to continue in the short-term. Also signalling further gains is the bullish 5-day moving average and 10-day moving average.

Technically, the pair is now facing some resistance near the 1.3300 handle. Hence, a clear break through the mentioned hurdle is likely to accelerate the up-move towards 1.3345-50 resistance, representing 50% Fibonacci retracement level of the pair’s recent fall. On the flip side, previous resistance, near the 1.3235 region, now becomes immediate support to defend, which if broken could accelerate the slide back towards the 1.3200 handle en-route 23.6% Fibonacci retracement level support near 1.3175 area.