GBP/USD: a decisive positive candle forming to leave support around $1.3050 [Video]
|GBP/USD
The near term outlook has taken on an increasingly uncertain configuration in recent sessions. However, taking a step back and we continue to view support around $1.2900/$1.3000 on a medium term basis as a buying opportunity. Ongoing positive configuration on momentum (RSI above 40, MACD lines above neutral, Stochastics rising above 50) suggests that corrections remain a chance to buy. Yesterday’s reaction only adds to that view, with a decisive positive candle forming to leave support around $1.3050. However, looking on the hourly chart there is a lack of conviction, as the hourly RSI oscillates between 30/70 (turning back from 70 again) whilst the MACD and Stochastics lines both post bear crosses. It suggests a lack of traction follow through from yesterday’s rebound. Above initial resistance at $1.3180 would test the 23.6% Fibonacci retracement (of $1.2192/$1.3515) around $1.3200, but the key near term resistance is at $1.3285.
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