“¢ The pair faded a knee-jerk bullish spike, led by an unexpected fall in the UK unemployment rate, and quickly retreated over 60-pips from session tops.
“¢ The downslide stalled near a confluence region, comprising of 50-hour SMA and a short-term ascending trend-line on the 1-hourly chart.
“¢ Positive technical indicators on the said chart, coupled with a near-term breakout above a rectangular chart pattern support prospects for a near-term short-covering bounce.
“¢ Weakness below the mentioned confluence support might negate the positive outlook and turn the pair vulnerable to head back towards retesting YTD lows.
GBP/USD 1-hourly chart
Spot Rate: 1.2778
Daily High: 1.2828
Daily Low: 1.2749
Trend: Bullish
Resistance
R1: 1.2828 (current day swing high)
R2: 1.2859 (R3 daily pivot-point)
R3: 1.2900 (round figure mark)
Support
S1: 1.2763 (50-period SMA H1)
S2: 1.2723 (13-month low set last Friday)
S3: 1.2701 (S2 daily pivot-point)
Share
