GBP/USD Price Analysis: The cable reversal pattern is still holding

GBP/USD trades just under flat on Wednesday and 1.30 still holds.
There was some interesting GDP data out earlier in the session.

Rajan Dhall, MSTA FX Daily

GBP/USD 1-hour chart

GBP is in full consolidation mode at the moment and there are some signs the uptrend may be coming to an end. Today (Wednesday) it was confirmed the UK has entered another recession but this was largely known to the market and priced in. In fact, the data beat analyst estimates but only marginally.

Looking at the chart, the price has hit the mean value of the current consolidation and moved lower. 1.3060 seems to be a magnet for the price at the moment and the price has touched the level over 30 times on this chart alone.

The level on the downside that will confirm the reversal is a break of 1.2980. The black trendline has now been broken but it's not the strongest of signals. The next support is at the green line near 1.3010.

The indicators are very mixed at the moment. The MACD histogram is green but the signal lines are under the zero level. The Relative Strength Index is still under the 50 zone but it has moved away from being oversold. This means there is now more room to the downside.

Overall, the trend in GBP/USD is still up on the higher timeframes. This 1-hour chart does show there is some potential in the reversal pattern but the consolidation low needs to be taken out first. A break back below in the MACD histogram would also go a long way to help the confirmation of the bearish trade.

Additional levels

GBP/USD

Overview
Today last price	1.3044
Today Daily Change	-0.0004
Today Daily Change %	-0.03
Today daily open	1.3048

Trends
Daily SMA20	1.2897
Daily SMA50	1.2678
Daily SMA100	1.2517
Daily SMA200	1.2711

Levels
Previous Daily High	1.3132
Previous Daily Low	1.3042
Previous Weekly High	1.3186
Previous Weekly Low	1.2982
Previous Monthly High	1.317
Previous Monthly Low	1.236
Daily Fibonacci 38.2%	1.3076
Daily Fibonacci 61.8%	1.3098
Daily Pivot Point S1	1.3016
Daily Pivot Point S2	1.2984
Daily Pivot Point S3	1.2925
Daily Pivot Point R1	1.3106
Daily Pivot Point R2	1.3164
Daily Pivot Point R3	1.3197

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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