FX.co ★ IgniteTrade | GBP/USD

GBPUSD Forecast: Daily time chat is showing GBPUSD trading in a descending channel at 1.35177. As it trades below the 23.6% Fibonacci retracement at 1.35177, the pair is trying to build an upward swing toward the significant resistance level of 1.35257, the initial resistance in the positive progress bias of the buyers. Fibonacci's 23.6% level of 1.35637 represents the retracement down-leg of the high of 1.35437 to 1.35227. A bearish trend continued into the end of last month, and the price failed to gain momentum above the 36.4% Fibonacci retracement level of 1.35237. As a result of the rejection of 41.9% Fibonacci, the price fell below 62.2% Fibonacci. Multiple rejections have occurred, and this price has reached 36.4% Fibo at 1.35357, creating a consolidation zone. Three candlestick patterns form by the rejection from 1.34837: bullish Doji, bullish hammer, and bullish top swing candlesticks, which could trigger positive bias in the upside direction. Bullish momentum indicators appear on the daily chart, indicating buyers attempt to establish a bullish bias in the short term. Now that the RSI has flattened above 70 but remains below 100 neutral levels, the market is trying to pick up the positive momentum.

In the MACD, the signal line shrinks towards 10, and the red trigger line remains above zero. Suppose the buyers strengthen and continue to rise with a breakout of 1.35417. It will boost the positive momentum of the buyers in the consolidation above 1.35327 at the 62.4% Fibonacci level. Buyers would then extend bullish bias towards 1.34827, near the upper Bolinger band around 40-SMA, which is crucial resistance. Bullish sentiment in the short term could be halted by 1.34877. A break at the 38.2% Fibonacci level of 1.35467 could lead to the launch of the bullish bias towards the 1.35217 level of 41.9% Fibonacci.