GBPUSD continues to remain below 1.4950 ahead of U.K Retail Sales m/m. Candles this week refused to hold above support-turned-resistance at 1.4950, indicating a possible continuation of the bearish run. However, with the release of U.K Retail Sales m/m later in the day, it is possible for prices to rise should data perform better than expected. Overall by considering only the daily chart, it is not possible determine the trend direction.
Observing the H4 chart, candles yesterday found support at 1.4850 after the quick drop when candles just touched 1.4982. Candles subsequently went back up slowly and is expected to continue rising along the uptrend line. However, should candles break below the trend line and 1.4850, it is highly possible for the pair to go on the bearish run towards 1.4722.
Focusing on the H1 chart, moving averages have slowly flattened out and candles now lie near all the moving averages. Movements in the market starts to decrease which may be the result of uncertainty in trend direction. For traders who are looking to trade this pair, it is highly advised to engage in any positions only during or after the release of U.K Retail Sales m/m. Any breaking below of the trend line and 1.4850 would offer a possible shorting opportunity towards 1.4722 and any signs of the pair finding support at 1.4850 would offer a longing entry towards 1.4982.
Trend Direction | S3 | S2 | S1 | R1 | R2 | R3 | |||
| Bullish towards 1.4982 | 1.4655 | 1.4722 | 1.4850 | 1.4982 | 1.5041 | 1.5125 |