- A sheer upside after a double bottom formation has advocated a strong reversal.
- A loud move displayed by the RSI (14) is expressing a shift in the dominance.
- Pound bulls are offering a bargain buy to investors after a pullback at 20-EMA.
The GBP/USD pair is facing corrective action after a juggernaut rally from Wednesday’s low at 1.2973. The cable has been corrected to a near 20-period Exponential Moving Average (EMA) and is providing an optimal opportunity for the pound investors to enter a firmer reversal.
A double bottom formation on a four-hour scale seems lucrative for the cable bulls. The pair has displayed a sheer upside after retesting March’s lows at around the psychological support of 1.3000. The double bottom chart pattern signifies a bullish reversal amid the absence of high-volume sellers while r-testing the critical bottom. The trendline placed from March 3 high at 1.3418, adjoining the March 23 high at 1.3299 will continue to act as a major barricade.
A loud move in the momentum oscillator, Relative Strength Index (RSI) (14) is indicating a shift from the dominance of bears.
A corrective pullback towards the 20-EMA at 1.3068 looks like an optimal buy for investors. This will drive the asset towards the round level resistance at 1.3100, followed by the 200-EMA at 1.3165.
On the flip side, a drop below the April 8 low at 1.2982 will trigger the greenback bulls, which will send the asset towards the 2 November 2020 low and the round level support at 1.2854 and 1.2800 respectively.
GBP/USD four-hour chart
|Today last price
|Today Daily Change
|Today Daily Change %
|Today daily open
|Previous Daily High
|Previous Daily Low
|Previous Weekly High
|Previous Weekly Low
|Previous Monthly High
|Previous Monthly Low
|Daily Fibonacci 38.2%
|Daily Fibonacci 61.8%
|Daily Pivot Point S1
|Daily Pivot Point S2
|Daily Pivot Point S3
|Daily Pivot Point R1
|Daily Pivot Point R2
|Daily Pivot Point R3
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