P.A appears restricted on the GBP...
Weekly gain/loss: +0.94%
Weekly closing price: 1.3848
The British pound was, once again, seen flexing its financial muscle last week, cruising to a fresh high of 1.3944. While the unit chalked up its fifth consecutive weekly gain, price has shook hands with a weekly AB=CD (see black arrows) 161.8% Fib ext. point at 1.3861. A push above this line would, technically speaking, expose a weekly broken Quasimodo line at 1.4079 and likely motivate further upside. A rejection from the current line, however, has the weekly support band at 1.3683 to target.
Turning our focus to the daily timeframe, resistance at 1.3878 came into play on Wednesday, but we only really saw the sellers make a play from here going into Friday’s close, despite the threat of a US governmental shutdown. This level, as far as we’re concerned, adds weight to the aforementioned weekly AB=CD formation.
Moving across to the H4 scale, we can see that price failed to sustain beyond the 1.39 handle on Friday. After putting in a top at 1.3945, slightly above Wednesday’s high at 1.3942, sentiment turned sour. Aggressively reclaiming 1.39, the GBP/USD concluded the week closing marginally beyond the H4 mid-level support at 1.3850.
Market direction:
Structurally, the GBP could be headed for further losses this week.
As for potential setups, we do not see much to hang our hat on right now. A decisive H4 close beneath 1.3850, while considered a bearish signal, is a restricted sell, in our view, due to the nearby H4 demand (green arrow) printed just ahead of the 1.38 handle at 1.3804-1.3833.
Data points to consider: No high-impacting events on the docket today.
Areas worthy of attention:
Supports: 1.3850 (potential); 1.38 handle; 1.3683.
Resistances: 1.39 handle; 1.3861; 1.3878; 1.4079.
Weekly closing price: 1.3848
The British pound was, once again, seen flexing its financial muscle last week, cruising to a fresh high of 1.3944. While the unit chalked up its fifth consecutive weekly gain, price has shook hands with a weekly AB=CD (see black arrows) 161.8% Fib ext. point at 1.3861. A push above this line would, technically speaking, expose a weekly broken Quasimodo line at 1.4079 and likely motivate further upside. A rejection from the current line, however, has the weekly support band at 1.3683 to target.
Turning our focus to the daily timeframe, resistance at 1.3878 came into play on Wednesday, but we only really saw the sellers make a play from here going into Friday’s close, despite the threat of a US governmental shutdown. This level, as far as we’re concerned, adds weight to the aforementioned weekly AB=CD formation.
Moving across to the H4 scale, we can see that price failed to sustain beyond the 1.39 handle on Friday. After putting in a top at 1.3945, slightly above Wednesday’s high at 1.3942, sentiment turned sour. Aggressively reclaiming 1.39, the GBP/USD concluded the week closing marginally beyond the H4 mid-level support at 1.3850.
Market direction:
Structurally, the GBP could be headed for further losses this week.
As for potential setups, we do not see much to hang our hat on right now. A decisive H4 close beneath 1.3850, while considered a bearish signal, is a restricted sell, in our view, due to the nearby H4 demand (green arrow) printed just ahead of the 1.38 handle at 1.3804-1.3833.
Data points to consider: No high-impacting events on the docket today.
Areas worthy of attention:
Supports: 1.3850 (potential); 1.38 handle; 1.3683.
Resistances: 1.39 handle; 1.3861; 1.3878; 1.4079.
Aviso legal
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