#GBPUSD @ 1.20900 Test of the descending triangle breakout will provide a buying opportunity at bargain prices. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• Test of the descending triangle breakout will provide a buying opportunity at bargain prices.
• Fed’s view of policy moderation has infused fresh blood into risk-sensitive currencies.
• Oscillation in the bullish range of 60.00-80.00 by the RSI (14) adds to the upside filters.

The pair currently trades last at 1.20900.

The previous day high was 1.2087 while the previous day low was 1.19. The daily 38.2% Fib levels comes at 1.2016, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1972, expected to provide support.

The GBP/USD pair is displaying a lackluster performance after dropping from the round-level resistance of 1.2100 in the Asian session. Exhaustion in the upside momentum has faded Cable’s rally for a while, however, the upside bias is still intact amid the risk appetite theme.

Meanwhile, the US Dollar Index (DXY) is aiming to build a cushion around 105.50 as Federal Reserve (Fed) chair Jerome Powell has supported moderation of policy tightening to safeguard the United States economy from any crash.

On an hourly scale, the Cable is expected to test the breakout of the descending triangle chart pattern near 1.2060. The downward-sloping trendline of the aforementioned chart pattern is placed from November 24 high at 1.2154 while the horizontal support is plotted from November 28 low at 1.1941.

It is worth noting that Cable witnessed a responsive buying action on Wednesday around 1.1900 that safeguarded the descending triangle breakdown. This has also strengthened the odds of an upside move ahead.

Advancing 20-period Exponential Moving Average (EMA) at 1.2030 adds to the upside filters. Also, the Relative Strength Index (RSI) (14) is oscillating in a bullish range of 60.00-80.00, which indicates a continuation of bullish momentum.

Going forward, a corrective move near the 1.2060 area will present a bargain buying opportunity for the market participants, which will drive the Cable towards Monday’s high at 1.2118, followed by November 24 high at 1.2154.

Alternatively, a decisive drop below Wednesday’s low at 1.1900 will drag the Cable toward November 22 low at 1.1825. A slippage below the latter will drag the pair to near November 21 low at 1.1779.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2082 at the time of writing. Pair opened at 1.2056 and is trading with a change of 0.22 % .

The pair is trading above its 20 Daily moving average @ 1.1786, above its 50 Daily moving average @ 1.1455 , above its 100 Daily moving average @ 1.1647 and below its 200 Daily moving average @ 1.2161

The previous day high was 1.2087 while the previous day low was 1.19. The daily 38.2% Fib levels comes at 1.2016, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1972, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.1942, 1.1828, 1.1755
• Pivot resistance is noted at 1.2128, 1.2201, 1.2315

[/s2If]
Join Our Telegram Group