For Traders

Analytical Reviews

Technical analysis

01.10.201814:31 Forex Analysis & Reviews: Intraday technical levels and trading recommendations for GBP/USD for October 1, 2018

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

On September 13, the GBP/USD pair was testing the depicted daily downtrend line which came to meet the pair around 1.3025-1.3090. Since then, the pair has been demonstrating a successful bullish breakout so far.

This price zone (1.3025-1.3090) also corresponds to 50% and 61.8% Fibonacci levels. Currently, this price zone turned to become a prominent demand zone to be watched for bullish price action.

However, on H4 chart, the market failed to maintain its uptrend within the depicted bullish channel on H4 chart. The lower limit of the depicted channel (which came to meet the GBP/USD pair around 1.3190) failed to offer sufficient bullish demand.

As expected, the price level of 1.3190 offered significant bearish rejection and a valid SELL entry which is running in profits (the backside of the broken bullish channel).

Therefore, the GBP/USD short-term outlook turned to become bearish towards 1.3010 (50% Fibonacci level) where a bearish breakdown should be anticipated before a further decline can take place.

Any decline below 1.3010 (50% Fibo level) will probably invalidate the DAILY bullish scenario for the short-term.

Hence, the pair would have short-term bearish targets around 1.2960 and 1.2900.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.