empty
 
 
13.05.2022 05:56 PM
Trading Signal for GBP/USD on May 13-16, 2022: buy above 1.2207 (2/8 Murray - oversold)

This image is no longer relevant

Early in the American session, the British pound (GBP/USD) is showing signs of exhaustion and oversold conditions. After reaching the low of 1.2154, a strong technical rebound is observed which could be a sign of the end of the downtrend.

Gloomy UK growth data releases, combined with market risk aversion, keep the downward pressure on the pair intact.

According to the daily chart, we can see that the GBP/USD pair is bouncing and consolidating above 2/8 Murray (1.2207). A close on daily charts above this support could signal the start of a strong technical bounce and could reach 21 SMA at 1.2593.

On the daily chart, we can see the formation of a falling wedge pattern. A break above 1.2250 and a close above this level on the daily chart could confirm the acceleration of the upward movement and could signal a change in trend in the short term.

The equity market is showing a positive bias, which is a sign that investors are changing their perception of risk. This factor could favor the British pound and it could reach the resistance level at 1.26 and up to the top of the bearish channel formed on February 14.

Our trading plan for the next few hours is to buy GBP/USD above 1.2207 with targets at 1.2250 and 1.2593 (21 SMA). The eagle indicator is in the oversold zone showing a positive signal. It is likely that in the coming days the British pound can recover part of its losses and might reach the area 4/8 Murray around 1.2695.

Dimitrios Zappas,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback