GBPUSD – Bulls Set Sights on 2024 High
The GBP/USD currency pair formed a longwick bearish candle stick pattern close to the 78.6% Fibonacci at 1.276. The long wick candlestick interprets as a signal for trend reversal.
Concurrently, the stochastic oscillator is in oversold territory on the daily chart, increasing speculation about a shift in the trend from bullish to bearish.
GBPUSD Technical Analysis Daily Chart
GBP/USD Technical Analysis 4-Hour Chart
As of writing, Pound Sterling trades at about 1.27 against the U.S. Dollar, slightly above the EMA 50 and 61.8% Fibonacci level. As the image shows, the price ranges upward in the bullish flag, which signifies the robust uptrend.
GBP/USD Technical Analysis 4-Hour Chart
Interestingly, the awesome oscillator signal divergence while the red bars are clinging to the signal line. Adding the AO divergence in the 4-hour chart to the long wick candlestick pattern in the daily chart increases the assumptions of a shift in the trend or the beginning of a consolidation phase.
Technical Indicators Point to Bullish Market Trends
The relative strength index value is 51, trying to stabilize the position above the 50 levels, while the stochastic %K line value is 31, showing bullish momentum in the market.
These developments in the technical indicators in the 4-hour chart suggest the market is bullish, but the trend could reverse and aim for lower support levels.
£1.266, the Key Level for the Market
The immediate support is the 61.8% Fibonacci at £1.266. If the price dips and closes below this support, the selling pressure that began on Wednesday could extend to 50% Fibonacci at £1.259, a deck backed by the ascending trendline.
£1.266, the Key Level for the Market
GBPUSD – Bulls Set Sights on 2024 High
£1.266, the Key Level for the Market
Conversely, bulls should maintain a position above EMA 50 and the immediate support (1.266). In this scenario, the next target could be testing May’s peak at 1.276, followed by 1.289, the 2024 all-time high.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
