Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
- Starting with the day chart, we follow up with the non-topping action near 61.8% retracement level, which suggests that the rally is onto the next target. The market is in a bullish mode and should be targeting 1.63, with 1.61 as a pivot to clear before that. 1.61 is also the 78.6% retracement level.
- The RSI is heading towards 70, and likely to break it soon, confirming bullish momentum.
- The GBP/USD 4H chart shows that the wave that's been channeling is likely a wave 3, suggesting a bullish impulse wave has been developing.
- This supports the bullish case to test 1.61, and target 1.63. We did also have a bullish momentum break in the 4H chart already last week, and the RSI remains very bullish, although that might hint at a near-term correction.
- A correction decline should not break below 1.5660, but we should expect there to be support near 1.5810.
Fan Yang CMT
Chief Technical Strategist