Forex Technical Update
- After a critical rejection from pushing above 1.6450, the GBP/USD slid to 1.6255.
- Now is has found its way back above 1.63, near 38.2% retracement
- Looking at the 1H chart, we can see how quiet this rally is.
- You also see the RSI has been spending most of the time below 40, and was pushed below 30 several times, strong showing of bearish momentum in the time-frame with 1H candles.
- The 1.6350 is a psychological resistance and near a previous pivot (low for 8/24 and 8/17).
- Essentially, there are also resistance at the 1.6355 (61.8% retracement and 1.6383, 78.6% retracement). We can say there is a resistance zone between 1.6350 and 1.6380.
- Also note that a swing to complete an ABC pattern where C=A projects to 1.6335 area, near 50% retracement.
- The market would reflect bearish dominance if it does not even allow for a rally to reach the 1.6350 level.
- Some lower pivots for a bearish continuation scenario in the short-term are the 1.6110 low, and the 1.60 psychological support as well as a local pivot.
Fan Yang CMT
Chief Technical Strategist