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
Multiple Time-frame Analysis
Video (1/24): A Look at the Greenback as the USD Index Retraces 61.8%
- The GBP/USD plunged after failing to successfully break and sustain the break above 1.60. The 1.61 and 1.63 levels are put to the side as targets.
- The RSI in the 1H chart reflects bearish continuation staying mainly below 60, then plunging below 30. In the near-term this is oversold, and the market might by in a pause or consolidation.
- If after this consolidation, the market remains below the 1.59 area, we should be in a healthy decline towards 1.5660, where we will test the resolve of the bears. A break below this opens up the bearish outlook towards 1.5350.
- The 4H chart shows the market breaking out below a rising trendline.
- The RSI also broke below 40 and is looking to tag 30 soon.
- The most recently completed bearish candlestick was the strongest in the pack since rallying in December, so it is strong bearish signal.
- In consideration that the market could be developing a bullish impulse wave, a conservative bearish projection is to the 1.5660 level. If that level cracks, then we are looking at the 1.5350 and 1.53 levels as next targets.
Will the GBP/USD remain bullish after this decline? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist