- GBP/USD is making tracks higher and bulls eye the 38.2% Fibonacci target of around the 1.2120s.
- On the 15-minute chart, GBP/USD is breaking the structure after putting in a higher low for the New York session.
- A break of 1.2092 is now what the bulls need to solidify the prospects of a push higher for the end of the day.
As per the prior analysis, GBP/USD Price Analysis: Bulls moving in on the bear's break of 1.2090 structure, the price rallied in a continuation of the bullish correction into the Daily bearish impulse as outlined in the article. We are now in the throws of a bullish reversal of the New York session with targets for a second bullish close for the middle of the week's trade as the following will illustrate.
GBP/USD prior analysis
GBP/USD bulls moved in on Tuesday and were setting the foundations for a bullish correction of the slide from the 1.23s at the start of February. The following illustrated the bullish bias for Wednesday (today):
The price had rallied from a low of 1.1960 to a high of 1.2095, taking out Monday's high, MH, and breaking structures, BoS, along the way, The price had also moved to the backside of the prior bearish dynamic resistance, (bearish trendline), that was expected to act as a counter-trendline.
The breakout of those structures left the directional bias in favour of a meanwhile bullish correction on the daily chart for Wednesday, pending a bullish close on Tuesday (yesterday):
This left the foundations of a long trade for whichever session traders were. Asia was a sideways session, setting the foundations for an explosive move to the upside in the London day whereby GBP/USD rallied from a low of 1.2037 to a high of 1.2109.
GBP/USD, what now?
The question is whether there is anything left in the tank from the bulls in the US session. For the day to close bullish, which was yesterday's thesis, the price must close higher than Tuesday's closing price of 1.2046. The daily ATR is 122 pips and for the day so far the range has been between 1.2030 and 1.2109, 79 pips. This leaves further to go on the upside if the minimum of the daily ATR is to be reached coming in at around 1.2250.
On Tuesday, looking for a bullish setup, the 1.2180s were eyed in a 50% mean reversion target. On the way there, a 38.2% Fibonacci retracement was located at 1.2129 which is still vulnerable for today and certainly for the remainder of the week:
On the 15-minute chart, the price is breaking the structure after putting in a higher low for the New York session. A break of 1.2092 is now what the bulls need to solidify the prospects of a push higher for the end of the day towards the 38.2% Fibonacci target of around the 1.2120s:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
EUR/USD drops toward 1.0700 after US jobs report
EUR/USD came under renewed bearish pressure in the second half of the day on Friday and declined toward 1.0700. Stronger-than-expected Nonfarm Payrolls (NFP) data helps the US Dollar gather strength ahead of the weekend and forces the pair to stay on the back foot.
GBP/USD extends slide below 1.2450 amid a stronger USD
GBP/USD dropped further and hit fresh daily lows below 1.2450 amid a stronger US dollar. The Greenback remains firm following the release of the US May jobs report. Despite losing almost 100 pips on Friday, GBP/USD is still on track for a weekly gain.
Gold falls below $1,960 as US yields rebound after US jobs data
Gold price turned south and declined below $1,960 on Friday. After the data from the US revealed that Nonfarm Payrolls rose 339,000 in May, the benchmark 10-year US Treasury bond yield gained more than 2% and recovered toward 3.7%, weighing heavily on XAU/USD.
China crypto community picks Ethereum, Arbitrum and BNB Chain as top protocols
Ethereum, Arbitrum and BNB Chain protocols are top picks for the Chinese crypto community, data from a report shows, a possible bullish catalyst for tokens related to these protocols as Hong Kong opens the door of crypto to retail investors.
LULU stock adds 15% on big Wall Street beat
Lululemon Athletica did it again. In something that has become quite predictable, LULU stock sailed 14.9% higher in Friday’s premarket to $377.20 after the prized athleisure brand posted a nearly 15% earnings beat for the first quarter.