GBPUSD fell short of 1.5220 before BOE and FOMC statements, the technical price resistance holding firm the second time in as many days. The Dollar strengthened across the board with economic indicators suggesting that the economic activity was expanding. Based on D1 chart, candles are expected to fall towards and below 1.51 towards 1.5075 where we could expect an inverse head and shoulder formation should 1.5075 holds as a support.
Candles were observed to be resisted at 1.5200. Stochastic oscillator hooks below 79, suggesting that buying actions in the market starts to decrease. The nearest support level to note of is 1.5075, where we could possibly expect an inverse head and shoulder pattern to form. For intraday traders, it is possible to enter a shorting entry but with profit taking level at 1.5075 for it is a strong support which has been tested thrice even since candles broke below 1.52.
Focusing on H1 chart, candles have currently exhausted at Fibonacci Expansion 127.2% and seeks to retrace minimally. Candles are expected to continue falling until they re-test 1.5075.
|Bearish in the short run||1.5075||1.5104||1.5196||1.5258|