GBPUSD - Technical view
Daily Time Frame:
4 Hour Time Frame:
1 Hour Time Frame:
Review:
To begin as always with our technical analysis using the top down approach we've begun here looking at the Daily timeframes. Over the past number of week's we have been watching the uptrend retracement following the Market crash observed in March. Having seen price maintain the 1.1450 to 1.1500 level in Mid- March we have watched the upside continuation or retracement with keen interest. From a technical perspective, we had ear marked initially the potential rejection zone around the 1.2500 originally as potential continuation in the over riding or initial downtrend set in March. In respect to GBPUSD we had witnessed a near two week period of sustained consolidation around the 61.8 fib level with clear and confirmed rejection on the Daily timeframes. Moving to this current trading week, through the Asia Session on Tuesday (See the green boxes for the highlighted Asian session range) this pair has moved lower quite rapidly and has continued the move during both the London & NY Trading sessions. Fundamentally what we are looking for here is the continuation of the initial move made today to the 1.2300 target and for sustained progress in the coming days lower. This is reiterated further through the Fibonacci technical tool used to calculate the turning or exhaustion point for the retracement the progression of the extension, in this case lower. On the daily timeframes I would be looking for the continuation to hopefully retest the lows and move into those extension points around the 1.0900 to 1.1000 level over the medium term. As we move to the 4hr timeframes, again we have further confirmation of the 61.8 Fibonacci rejection and initial moves lower through the Asia, London & NY Trading session's as mentioned above. To add further information to this. On the 4hr charts we can also the price now consolidate at the 1.2300 level following the engulfing breakout through the 1.2450 and 200EMA. As the NY Trading session comes to a close this evening I would within the intraday structure expect the price of this pair to continue consolidating before observing the next wave lower. This can come in two form a pullback to test the EMA's on the 1hr or lateral move through the Asian session with next wave of momentum coming tomorrow. This is further emphasised in the 1hr timeframes where we can see multiple EMA Crossover's occurring this essentially means that Downtrend is starting to formalise and the EMA's should begin to follow suit. The Ema's themselves are useful tools to spot intraday pullbacks for the next wave of momentum. To conclude again, we would be looking for more downside momentum over the medium term and for those looking to catch entries on this to do so on the pullbacks and the creation of new Lower Highs in the downtrend.
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