Exclusive GBP/USD analysis 21.11.2016

GBP/USD Giant Head and Shoulders looming on 4H charts

The GBP/USD recent data has been mixed. While retails sales data came better than expected, core CPI was worse than expected. I think the GBP/USD may be ranging at this point as sell the rallies scenario is still dominating the pair.

Technically, we can see a giant Head and Shoulders pattern on 4h time frame and clear POC zone signals sellers could appear. POC (H3, WPP, neckline, descending trend line, EMA89, 50.0) 1.2395-1.2415 could reject the price if we see the retracement to the upside towards 1.2300. However if we see bearish continuation without any retracement then pay attention to 1.2300. Strong H1 momentum or 4h close below 1.2300 should target 1.2255-33 zone. Only above 1.2500 ( Xcross ™) bulls might region a temporary control.

GBP/USD 4H Chart

Daily technical analysis is written by Nenad Kerkez, a senior analyst at Admiral Markets

Published by

Nenad Kerkez

Nenad Kerkez is an analyst and trader who has been in the market since 2008 and works closely with Admiral Markets as their Senior Lecturer and Market Analyst. Nenad covers over 25 currencies on an intraday basis and has a Masters in economics. He also developed CAMMACD TM, a proprietary trading and analysis strategy wit ever powerful pre fact setups that you can read every day. Nenad is also a valuable presenter on various FX EXPO shows, where he always presents new and interesting ways how to trade price action and protect your own investments. Further, he is the co-founder and head of Elite Currensea Trading, an educational website for currency traders.