• The Rising Wedge formation is advocating for pound bulls going forward.
  • A progressive range shift move by the RSI (14) adds to the upside filters.
  • The cable bulls are facing resistance at 200-EMA.

The GBP/USD pair has displayed volatility contraction in the early trade after failing to sustain above its Initial Balance. The cable is oscillating in a range of 1.2514-1.2549 in the Asian session and is expected to trade lackluster as it has failed multiple times while attempting a break above 1.2550 from Tuesday.

A Rising Wedge chart formation on a four-hour scale is underpinning the pound bulls for now. The upper boundary of the above-mentioned chart pattern is placed from 1.2400 while the lower boundary is plotted from March 13 low at 1.2155.

A progressive range shift move by the momentum oscillator, Relative Strength Index (RSI) (14) is displaying a strong upside for the asset. The pair has comfortably shifted into the bullish range of 60.00-80.00, which indicates more upside ahead.

The asset is facing barricades at the 200-period Exponential Moving Average (EMA), which is trading at 1.2600. While an establishment above 50-EMA, which is hovering around 1.2465 confirms short-term bullish momentum.

Should the asset displays a pullback move to near 50-EMA at 1.2465, a responsive buying action will drive the asset towards Monday’s high at 1.2601. An occurrence of the same will further push the asset towards April 25 low at 1.2698.

Alternatively, a slippage below May 19 low at 1.2330 will drag the asset to near March 6 low at 1.2261, followed by March 13 low at 1.2155.

GBP/USD four-hour chart

GBP/USD

Overview
Today last price 1.2542
Today Daily Change 0.0010
Today Daily Change % 0.08
Today daily open 1.2532
 
Trends
Daily SMA20 1.2425
Daily SMA50 1.2809
Daily SMA100 1.3137
Daily SMA200 1.3349
 
Levels
Previous Daily High 1.2599
Previous Daily Low 1.2472
Previous Weekly High 1.2525
Previous Weekly Low 1.2217
Previous Monthly High 1.3167
Previous Monthly Low 1.2411
Daily Fibonacci 38.2% 1.252
Daily Fibonacci 61.8% 1.255
Daily Pivot Point S1 1.247
Daily Pivot Point S2 1.2407
Daily Pivot Point S3 1.2343
Daily Pivot Point R1 1.2597
Daily Pivot Point R2 1.2661
Daily Pivot Point R3 1.2723

 

 

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