The GBP/USD pair’s rally is still in progress and edges higher towards the 1.3429 level. Intraday bias remains on the upward direction at this point. A firm break at the 1.34297 resistance level will confirm resumption of whole rebound from the 1.3362 bottom level. In such case, the pair would target projection at the 1.3445 level next. On the downside, the pair trading below the 1.3445 minor supports will turn intraday bias neutral first. But the near term outlook will stay cautiously bullish as long as support holds.
In the bigger picture, the current development suggests that a rebound from the 1.3378 level is developing into a medium term rise. There is no confirmation of trend reversal yet and we will continue to treat such a rebound as a corrective pattern. But in any case, a further rise is expected towards the 1.3429 level. Breaking at the resistance levelis needed to confirm completion of the rebound. Otherwise, a further rise is now in favor.
The recent run low on the sterling has been stopped and showed some consolidation. A huge accelerating bull run has seen the market burst through the key high at the 1.3429 level to see what looks to be a huge breakout above the high of these levels.
The market has been limited by the resistance band by these levels on numerous occasions in the past few candles but the weakness of the dollar has driven a breakout. The pair chasing the sterling higher would be a move filled with a significant reward. The pair’s oscillator trading at the 59 level is higher than it has been in recent times and rises further. The pair’s momentum is clearly incredibly stronger. The pair staying with the Bull Run may be profitable in the very near term. However, if profit taking hits, it could be a sharp reversal. We keep watching for an exhaustion signals.
It is also notable that the entirety of current session took placeon the pivot bands. The bulls were looking to consolidate further more before the sharp gains of today, but again the move looks to capitalize.The pairclosing back inside the resistance level would now be a corrective signal and also the oscillator was close to crossing back above the 50 level before today’s gains. A move back below the 50 level on the daily timeframe would now be corrective signals. The pair closing level back inside the band would now be a profit taking signal. The four hourly chart supports around the breakout at the 1.3362 level.
The GBP/USD pair opens today’s trading with a clear positivity to move away from the bullish trend line that appears on four hourly charts. As the EMA50 shall be the first key level for support to protect the price from suffering more losses. While the pair’s stochastic begins to provide some positive overlapping signals on the four hourly time frames.
Therefore, these factors encourage us to continue suggesting the bullish trend on the intraday and short term basis. The pair’s main targets begin at the 1.3429 and extend to reach 1.3445 levels. This will take into consideration that the pair breaking at the 1.3429 level will begin the expected rise. This willpush the price to start bullish correction on the intraday basis.
The pair’s expected trading range for today is between the 1.3378 supports and 1.3445 resistances levels.
Expected trend for today: Bullish
For more detailed analysis from the author, please visit NoaFX.