- 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||1.3069|
|Today Daily Change||-0.0003|
|Today Daily Change %||-0.02|
|Today daily open||1.3072|
|Previous Daily High||1.3147|
|Previous Daily Low||1.3034|
|Previous Weekly High||1.3167|
|Previous Weekly Low||1.2982|
|Previous Monthly High||1.3438|
|Previous Monthly Low||1.3|
|Daily Fibonacci 38.2%||1.3077|
|Daily Fibonacci 61.8%||1.3104|
|Daily Pivot Point S1||1.3021|
|Daily Pivot Point S2||1.2971|
|Daily Pivot Point S3||1.2908|
|Daily Pivot Point R1||1.3135|
|Daily Pivot Point R2||1.3198|
|Daily Pivot Point R3||1.3248|
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