- GBP/USD sellers are eager to resume the main bear trend as the market is finding strong resistance near the 1.3000 figure. GBP/USD pulled back about 70 pips after the release of the US Non-Farm Payrolls but it appears that the move down was a knee-jerk reaction as bulls are jumping back in order to resume the short-term bull trend.
- GBP/USD is trading above its 50, 100 and 200-period simple moving averages (SMA) and the 50 SMA crossed above the 200 SMA suggesting building bullish momentum. Bulls objective is to break above the 1.3050 key level in order to create higher highs on the daily chart.
- A break below the 1.2900 figure would invalidate the bullish bias.
GBP/USD 4-hour chart
Spot rate: 1.2960
Relative change: 0.28%
High: 1.3029
Low: 1.2913
Main trend: Bearish
Short-term trend: Bullish above 1.2900
Resistance 1: 1.3000 figure
Resistance 2: 1.3050 August 30 swing high, key level
Resistance 3: 1.3082-1.3100 supply/demand level and figure
Support 1: 1.2957 July 19 swing low
Support 2: 1.2937 August 22 swing high
Support 3: 1.2900 figure
Support 4: 1.2868 August 22 low
Support 5: 1.2845, August 29 low
Support 6: 1.2800 August 24 swing low
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