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
Previous post (1/26): Stalking GBP/USD's Rally in Anticipation of Further Decline
- The GBP/USD pair has been in an expanding triangle that was likely a wave 4. Another wave up at the moment can complete wave 5 near 1.61, which provides important resistance .
- There could be a failure for wave 5 however, and we could see it top below the 1.6050 high as the RSI shows a lost of bullish momentum.
- While all this is happening, the GBP/USD in the daily is nearing the apex of a large triangle seen in the weekly.
- The weekly RSI shows neutral momentum, and the daily one as well.
- Price action shows the market trying to form a top. If we form a top and the market declines below 1.56, we might be heading to 1.53 and possibly further lower as the market would have broken below the large triangle.
- On the upside, 1.61 is an important resistance above which, we break the triangle, and target 1.63 in the short-term, with further bullish implication beyond that.
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Fan Yang CMT
Chief Technical Strategist