GBPUSD – Weekly Forecast 06 -10 Jan

Pound-Dollar-7676-ert

Recommendations: SHORT positions below 1.6530 with 1.6360 & 1.6300 as next targets.
Alternative scenario: The upside breakout of  1.6530 will open 1.6590/1.6650 levels.
Description: The GBPUSD maintained a bearish momentum last week, stability below 1.6530 will keep the pair under pressure with risk towards 1.6360/1.6300 levels, below 1.6300 will accelerate the bearish move towards 1.6240/1.6180 levels. On the upside, break of 1.6530 will delay the bearish move and open 1.6590/1.6650 levels before the next move.

Trend direction: Downward

Time Frame: Intraday ( 4 Hour)

Support and resistance levels :

  • 1.6650
  • 1.6590
  • 1.6530 – Overbought – Trend continuation level
  • 1.6470 – Minor resistance
  • 1.6410 –
  • 1.6360  – Minor support
  • 1.6300  – Oversold – Bearish breakout level – Pivot level for this week.
  • 1.6240 – 1.6180 – 1.6120 – 1.6060

Considerations :

  • Main resistance comes at 1.6530 levels, selling the pair is recommended after rejection below this level.
  • If 1.6530 is taken out, 1.6470 should contain any bearish correction and bring rise towards 1.6590/1.6650.
  • If  1.6530 is taken out, and  1.6470 failed to hold, next support would be 1.6360.
  • If 1.6300 is lost, 1.6360 should limit any upside move and bring decline towards 1.6240/1.6180.
  • If 1.6300 is lost, and 1.6360 fails to limit any upside move above 1.6300, next resistance would be 1.6470……

 

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