Watch for H1 resistance at 1.2740 to break for a run to 1.28

2020年6月9日

GBP/USD:

Monthly timeframe:

(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)

Support at 1.1904/1.2235 remains in motion as we transition into June, with the month currently recording gains of more than 3%. Neighbouring resistance can be found in the form of a trendline (1.7191), which, as you can see, is now within walking distance.

Concerning the primary trend, lower peaks and troughs have decorated the monthly chart since early 2008.

Daily timeframe:

Partially altered from previous analysis –

GBP/USD retained its underlying bid Tuesday, latching onto its ninth successive gain after the 200-day simple moving average at 1.2674 kept the pound on the winning side of the table.

Although price action remains contained within the walls of supply at 1.2649/1.2799 (prior demand), the odds of a run to supply at 1.3021/1.2844 have certainly increased after defending the 200-day SMA.

With respect to the RSI indicator, we also recently entered overbought terrain on this timeframe.

H4 timeframe:

Partially altered from previous analysis –

Supply at 1.2699/1.2605 recently came under fire, with price penetrating and holding its upper boundary. The week has seen the area shift to demand, reinforced by another local demand coming in from 1.2583/1.2632.

This shines light on supply at 1.2851/1.2805, an area boasting mouth-watering momentum out of its base and essentially representing a decision point to break the 1.2725 low (Feb 28).

H1 timeframe:

Partially altered from previous analysis –

Resistance at 1.2740, once again, entered play on the H1 timeframe after breaking through orders at the 1.27 level heading into US trade Tuesday. While 1.2740 may fuel another run sub 1.27, 1.28, a level converging closely with the lower ledge of H4 supply at 1.2851/1.2805, is worth noting as possible resistance should we turn for higher levels today.

Structures of Interest:

Monthly trendline resistance is not expected to make its presence known until around the 1.2790ish region, merges with the upper limit of current supply on the daily timeframe at 1.2649/1.2799.

With monthly suggesting scope to pop higher, and H4 also displaying space to approach 1.2851/1.2805, a break of H1 resistance at 1.2740 could occur today, offering intraday buyers the opportunity to long towards 1.28.