GBP/USD Price Analysis: Inverse Head-And-Shoulders underway on 4-hour chart


Share:
  • GBP/USD bulls attack 1.2500 while staying above 200-bar SMA.
  • A clear break above 50% Fibonacci retracement will validate the bullish chart pattern.
  • Strong RSI conditions, sustained trading beyond the key SMA keep buyers hopeful.
  • Mid-June top could offer a small resistance ahead of June month’s top.

GBP/USD takes the bids near 1.2490, up 0.05% on a day, during Monday’s Asian session. In doing so, the Cable extends Friday’s bounce off 200-bar SMA to sharpen the inverse Head-And-Shoulder formation on the four-hour chart. However, the neckline of the bullish pattern joins 50% Fibonacci retracement level of June 10-29 fall to add strength to the upside barrier.

Increasing the odds of an upside break is the strong RSI condition and the pair’s sustained trading beyond 200-bar SMA.

As a result, the bulls are waiting for a clear break above 1.2535 to escalate the recent recovery moves. In doing so, the June 16 top near 1.2690 could become immediate resistance to watch ahead of the previous month’s high near 1.2815.

Meanwhile, a downside break below 200-bar SMA level of 1.2458 can quickly test 1.2400 round-figure.

Though, 1.2330 and 1.2300 might hinder the quote’s further weakness ahead of June 29 bottom surrounding 1.2250.

GBP/USD four-hour chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price 1.248
Today Daily Change -2 pips
Today Daily Change % -0.02%
Today daily open 1.2482
 
Trends
Daily SMA20 1.2507
Daily SMA50 1.2423
Daily SMA100 1.2456
Daily SMA200 1.2692
 
Levels
Previous Daily High 1.2494
Previous Daily Low 1.2438
Previous Weekly High 1.253
Previous Weekly Low 1.2252
Previous Monthly High 1.2813
Previous Monthly Low 1.2252
Daily Fibonacci 38.2% 1.2472
Daily Fibonacci 61.8% 1.2459
Daily Pivot Point S1 1.2449
Daily Pivot Point S2 1.2416
Daily Pivot Point S3 1.2393
Daily Pivot Point R1 1.2504
Daily Pivot Point R2 1.2527
Daily Pivot Point R3 1.256

 

 

Share: Feed news

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

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

AUD/USD justifies fresh concerns of RBA vs. Fed divergence above 0.6700, China inflation eyed

AUD/USD justifies fresh concerns of RBA vs. Fed divergence above 0.6700, China inflation eyed

AUD/USD bulls take a breather at the highest level in a month, after rising the most in one week, as they flirt with the 0.6715-20 zone amid the early hours of Friday’s Asian trading session. 

AUD/USD News

EUR/USD cheers US Dollar slump to march towards 1.0800 despite looming Eurozone recession woes

EUR/USD cheers US Dollar slump to march towards 1.0800 despite looming Eurozone recession woes

EUR/USD bulls are in the driver’s seat while bracing for the next week’s European Central Bank (ECB) monetary policy meeting, ignoring the downbeat economic concerns for the old continent, amid broad US Dollar weakness. The major currency pair seesaws around a two-week high.

EUR/USD News

Gold: XAU/USD pressures highs around $1,970 Premium

Gold: XAU/USD pressures highs around $1,970

XAU/USD posted a nice comeback after bottoming at $1,939.66 a troy ounce on Thursday, a fresh weekly low. The US Dollar traded with a soft tone since the beginning of the day but turned frankly negative within American trading hours.

Gold News

Optimism price could rally 50% as network upgrade inspires new wave of OP adoption

Optimism price could rally 50% as network upgrade inspires new wave of OP adoption

Optimism price appears to have found support after a new buyer congestion zone came into effect to prevent the free fall. Accordingly, the Ethereum Layer 2 token is trading horizontally, giving bulls time to accumulate OP at affordable rates.

Read more

The Fed is unlikely to close the door for hikes

The Fed is unlikely to close the door for hikes

Markets have focused on the renewed uptick in macro momentum, which has resurfaced fears of inflation turning more persistent. But we doubt the rise in leading indicators will be sustained, and see evidence of underlying inflation continuing to gradually ease.

Read more

Forex MAJORS

Cryptocurrencies

Signatures