Chart of the Day: GBP/USD

Chart of the Day: Spot GBP/USD (10/06/2020) |

From a technical point of view, the GBPUSD is at an inflection point where the potential for further moves to the upside could be limited. The prevalent trend from the monthly timeframe is down. Connecting the swing high made 15th July 2014 to that of the 17th April 2018 and projected forward provides a potential resistance around 1.2950 to 1.30. When we connect the 15th July 2014 swing high to 12th December 2019, the potential resistance is around 1.3350, thereby suggesting that from current price, the upside potential is between 160 to 580 pips. On the daily timeframe, yesterday’s closed in the form of a hammer just below the 200 simple moving average. Due to the position of the hammer on the chart and the fact that price is currently above yesterday’s high and above the 200 simple moving average, I perceive this to be more of a continuation pattern. There is also the formation of a bullish flag on the daily timeframe and with the projection of the pole portion of the flag from its break out point, the expectation is seeing price achieve the 1.3175 level. However, due to the high impact news scheduled today relating to the USD, our profit target have been revised lower to 1.28880 as we could see volatility come into this pair. Also barring any sort of negative headlines on the GBP, the expectation is to see the continuation the current trend to the upside.

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