The GBP/USD pair has broken the upward rising trend line on a 30 minute time frame. The price is also trading below the 50 day (shown in green) and 100-day (shown in yellow) moving averages, which means that the bears have taken the control.
Bull Case
The pair has broken out of symmetrical triangle and if this pattern plays out completely, it could push the price near the 1.5644 level. The RSI is in oversold territory. There is also a clear deflection between the price and the RSI, which means that the bias could be to the upside.
The volatility for the pair is also high, as the price has pierced the Bollinger Band® and is trading away from its 20 day MA. However it is important to note that the piercing of Bollinger Band® is significant to this important level of support/resistance, as it could reverse the trend.
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Important Levels
Resistance Zones
1.6039-1.6007 Major
1.5892-1.5848 Major
1.5809-1.5774 Minor
Support Zone
1.5644-1.5610 Minor
1.5524-1.5489 Minor
1.5211-1.5188 Major
1.5034-1.5005 Major
DISCLOSURE & DISCLAIMER:
The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam