GBP/USD Up Channel Breakout!

GBP/USD Up Channel Breakout!

GBP/USD dropped aggressively after yesterday’s US inflation data. Now, is traded at 1.2912 level, far below 1.3068 yesterday’s high. As you already know, the US CPI and Core CPI have increased by 0.2% as expected.

Today, the US is to release the PPI and the Core PPI indicators. USD could resume its appreciation versus its rivals if the figures will come in line with expectations or better. 

  • GBP/USD Strongly Bearish

As you can see on the 4H chart, GBP/USD has failed to reach and retest the median line (ML) of the major ascending pitchfork and the R1 (1.3112) signaling high selling pressure.

It has ignored the Pivot Point (1.2977) and now is pressuring the S1 (1.2907) static support.

A valid breakdown below the S1 and through the median line of the descending pitchfork signals a deeper drop in the short term.

  • GBP/USD Sellers In Full Control

I’ve added the H1 chart for you to understand better the price action. GBP/USD has escaped from the ascending channel, it has retested the broken uptrend line and now it goes for another lower low.

If GBP/USD stabilizes under the median line (ml) and below the S1 (1.2908), the next downside targets are seen at 1.28 psychological level and at the lower median line (lml), around the S2 (1.2773).

Conclusion  

The failure to approach and reach the channel’s upside line, the R1 (1.3112), and the median line (ML) of the major ascending pitchfork announced the bearish momentum.

The breakdown from the up-channel suggests selling with instant execution. The Stop Loss could be hidden above 1.3 psychological level and the first downside target could be represented by 1.28 level.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
Share with other traders!

Author : Olimpiu Tuns

Leave a Reply

Your email address will not be published. Required fields are marked *