GBPUSD - Not a good time to buy yet
GBPUSD (1H) - short term bearish bias
After cable overshot above the psychological level of 1.33, the ensuing retracement came to rest on the bullish trend line established in November. We would expect more choppy actions in the shape of a wedge pattern in the next couple of weeks. On the hourly chart, the break of the floor at 1.3110 has dented the short-term bullish sentiment. While the pair is recovering from an over-extended sell-off as indicated by the RSI, the moving averages could act as strong resistance as more sellers join the rank.
Key support: 1.3000
Key resistance: 1.3155
After cable overshot above the psychological level of 1.33, the ensuing retracement came to rest on the bullish trend line established in November. We would expect more choppy actions in the shape of a wedge pattern in the next couple of weeks. On the hourly chart, the break of the floor at 1.3110 has dented the short-term bullish sentiment. While the pair is recovering from an over-extended sell-off as indicated by the RSI, the moving averages could act as strong resistance as more sellers join the rank.
Key support: 1.3000
Key resistance: 1.3155