empty
 
 
08.05.2020 10:58 AM
GBP/USD Reversal Still Possible!

The currency pair moves sideways in the short term according to the H4 chart, the H&S pattern was invalidated for now, but some good US figures today could bring this chart pattern to life.

The US Non-Farm Payrolls indicator is expected at -22000K, far below the -701K in March, the Unemployment Rate could increase from 4.4% to 16.0%, while the Average Hourly Earnings could increase by 0.5%. The economic figures could be crucial for the dollar, GBP/USD will register a significant movement around these releases.

This image is no longer relevant

GBP/USD has developed a Head & Shoulders pattern, unfortunately, this formation wasn't confirmed as the price has registered only a false breakdown below the Neckline (dark blue uptrend line) and below the 50% retracement level.

The failure to stabilize above the sliding parallel line (SL) has signaled that the upside movement could be finished and that a downside movement could develop in the days ahead. GBP/USD has come back to retest the median line (ML) as the USD was punished by the USDX's drop.

  • TRADING TIPS

We can sell GBP/USD after a drop below the 1.2265 former low, the first major target could be around 23.6% (1.1829) retracement level. So, a valid breakdown below the dark blue uptrend line (neckline) and below the 50% level will confirm a significant drop.

If you want to buy GBP/USD, maybe it would be better to wait for a valid breakout above the inside sliding line (SL - ascending dotted line), and above the 1.2647 high, the target will be somewhere at 1.3199 highest high.

Summary
Urgency
Analytic
Ralph Shedler
Start trade
Gana con los cambios en el valor de las criptomonedas con InstaForex.
Descarga MetaTrader 4 y abre tu primera operación.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    UNIRSE AL CONCURSO
  • Depósito al azar
    ¡Haga un depósito en su cuenta de $3,000 y obtenga $9000 más!
    ¡En Mayo, sorteamos $9000 dentro de la campaña Depósito afortunado!
    Obtenga la oportunidad de ganar depositando $3,000 en una cuenta de operaciones. Tras haber cumplido esta condición, se convertirá en un participante de la campaña.
    UNIRSE AL CONCURSO
  • Opere de forma inteligente, gane un dispositivo
    Recargue su cuenta con al menos $500, regístrese en el concurso y tenga la oportunidad de ganar dispositivos móviles.
    UNIRSE AL CONCURSO
  • 30% de bonificación
    Reciba un bono del 30% cada vez que recargue su cuenta
    OBTENER BONO

Recommended Stories

¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
Widget callback