Technical Analysis: Inverse head-and-shoulders, 200-bar SMA highlights 1.3000 for GBPUSD bulls

Technical Analysis: Inverse head-and-shoulders, 200-bar SMA highlights 1.3000 for GBPUSD bulls

GBPUSD's bounce off 23.6% Fibonacci retracement again drives the pair upwards to the key 1.3000 resistance comprising the neckline of a one-month-old inverse head-and-shoulders pattern and 200-bar SMA. However, bearish MACD and flat RSI could restrict the pair's further rise. In a case where the bulls manage to cross the 1.3000 psychological magnet, it's theoretical rally towards 1.3350 can take stops near the late-August lows and 61.8% Fibonacci retracement, respectively around 1.3050 and 1.3175.

During the quote's sustained declines below 23.6% Fibonacci retracement level of 1.2860, the 1.2800 and September 11 low near 1.2760 can lure the bears. Should there be a further weakness past-1.2760, GBPUSD sellers may eye the re-test of the previous month's low of 1.2674.

Trade Forex with MTrading


Join us on FB and Twitter to stay updated on the latest market events.

Our awards

award1 award2 award3 award4 award5