GBP/USD 1H Chart: Channel Up
|GBP/NZD 1H Chart: Channel Up
Comment: The presently emerging pattern itself does not mean a lot for the overall trend, but the fact that the currency pair has just broken a 12-week resistance trend-line is. The British currency is thus looking fairly strong, and this is confirmed by the hourly and four-hour technical indicators, although the daily studies are mostly bearish. All in all, during the next few days the price is expected to undergo a downward correction under 1.8150 and towards 1.80, but the next week is likely to be bullish for the Sterling, with the August 8 high at 1.8470 being a potential target. However, we should still recognise considerable downside risks, as the Pound is heavily overbought—74% of positions in SWFX are long.
GBP/USD 1H Chart: Channel Up
Comment: The Cable is well-positioned to advance. Having found a solid support area circa 1.2860/50, the currency pair was able to gain considerable ground, and it looks ready to extend the recovery by 1.2%more. The immediate obstacle is at 1.3170, and if the bulls manage to push the price above this resistance, the new target will be the July trend-line that has recently served as the upper bound of the symmetrical triangle at 1.3290.
Alternatively, if the selling pressure prevails and the price closes under 1.3120, the decline will likely continue until the rate hits 1.30. There the psychological level is reinforced by the 200-hour SMA and August 17 lows.
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