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Currently, the GBP/USD is in a position to post a potentially bearish closing price reversal top (at 1.2164), if confirmed, we could see the start in coming two days counter-trend rally.
The move will not change the trend, hence it will alleviate some of the downside pressure. With the main trend down, bearish traders will be looking for a fresh opportunity to set up short positions from the levels of 1.2000 and 1.1943.
On the hourly chart, the EUR/USD pair’s down trend is in progress today and reaches as low as 1.1890 so far. Intraday bias stays on the downside.
The bias remains bearish in the nearest term testing 1.1806 or lower. Immediate support is seen around 1.1806. A clear break below that area could lead price to the neutral zone in the nearest term.
Price will test 1.1806, because in general, we remain bearish on July 13rd, 2022. Yesterday, the market moved from its bottom at 1.1806 and continued to rise towards the top of 1.1943.
Today, on the one-hour chart, the current rise will remain within a framework of correction.
However, if the pair fails to pass through the level of 1.1943 (major resistance), the market will indicate a bearish opportunity below the strong resistance level of 1.1943 (the level of 1.1943 coincides with the ratio of 38.2% Fibonacci retracement).
Since there is nothing new in this market, it is not bullish yet.
Sell deals are recommended below the level of 1.1943 with the first target at 1.1806 so as to test the double bottom.
If the trend breaks the double bottom level of 1.1806, the pair is likely to move downwards continuing the development of a bearish trend to the level of 1.1750 in order to test the weekly support 1.
The pair will probably go down because the downtrend is still strong. Consequently, the market is likely to show signs of a bearish trend. So, it will be good to re-sell below the level of 1.1750 with the second target at 1.1725 and further to 1.1705.
On the upside, break of 1.1943 minor resistance will turn intraday bias neutral again. But outlook stays bearish as long as 1.1943 support turned resistance holds.
At the same time, the breakup of 0.6640 will allow the pair to go further up to the levels of 1.2027 so as to retest the weekly resistance 2.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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