Technical Analysis for GBP

Technical Analysis for GBP

The pair managed to touch the second target of the alternative bullish harmonic Bat Pattern at 1.6485 represented in 61.8% correction of CD Leg of the pattern. Based on technical analysis rules, extending the upside move requires breaching the referred to level, but the pair has rebounded to the downside and is currently trading in middle levels between 61.8% correction from the upside and 50% correction at 1.6435 from the downside.

Linear Regression Indicators are positive but AROON is showing that the upside move is losing its momentum, while MACD histogram began to drop. Therefore, we will place stop-loss below 1.6380 and we wait for an entry point close to 50% correction to reduce the risk in our recommendation today.

Support: 1.6435, 1.6390, 1.6340, 1.6300, 1.6280
Resistance: 1.6485, 1.6515, 1.6550, 1.6580, 1.6625

Recommendation Based on the above, buy the pair above 1.6440 targeting 1.6485, 1.6515 and 1.6545, stop-loss below 1.6370