GBPUSD Analysis - Follow Up post for the Analysis posted on 15th Feb 2024
Follow up Post for the post:
Click here for GBPUSD Analysis posted on 15th Feb 2024
Afternoon Session: "GBP/USD Technical Analysis: Navigating a Bearish Landscape with Key Resistance and Support Zones", heading for the support?
Highlights:
- The GBP/USD chart exhibits a bearish overall momentum, indicating a prevailing downward trend in the market.
- The 1st resistance at 1.2602, with its historical significance and the 38.20% Fibonacci Retracement, is expected to trigger a bearish reaction. The 2nd resistance at 1.2641 is identified as a pullback resistance, potentially acting as a barrier to further upside movement.
- The 1st support at 1.2542 and the 2nd support at 1.2518 are recognized as multi-swing low supports, signifying their historical importance as levels where buying interest has emerged. Additionally, an intermediate support at 1.2571 adds reinforcement for potential buying interest during pullbacks.
The current analysis of the GBP/USD chart suggests a prevailing bearish trend. Traders are anticipating a negative market reaction when the price approaches the 1st resistance level at 1.2602. This level holds significance due to historical price action and the presence of the 38.20% Fibonacci Retracement, indicating a potential resistance point.
On the support side, two critical levels have been identified. The 1st support at 1.2542 is characterized as a multi-swing low, highlighting its historical importance as a level where buying interest has historically emerged. Similarly, the 2nd support at 1.2518 is also noted as a multi-swing low, reinforcing its significance as a strong potential support zone.
The 2nd resistance level at 1.2641 is described as a pullback resistance, suggesting that it may act as a formidable barrier, hindering further upward movement. This implies that traders should be cautious about expecting a smooth progression beyond this point.
Intermediate support at 1.2571 adds a layer of reinforcement for potential buying interest during pullbacks. This level is considered significant in providing support during temporary downward movements in the overall bearish trend.
In summary, the comprehensive analysis integrates technical indicators such as Fibonacci retracement and historical price patterns to guide traders in understanding potential resistance and support levels. The information provided aids traders in making informed decisions regarding entry, exit, and risk management within the GBP/USD market.
Support and Resistance Levels:
