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GBP/USD: Bias Is Mixed And Currently In A Corrective Area

Published 05/21/2015, 12:44 AM
Updated 07/09/2023, 06:31 AM

INTRADAY CHART

GBP/USD 1 Hour Chart

BIAS: Mixed - currently in a corrective area

Resistance: 1.5566 1.5587 1.5598-19 1.5644
Support: 1.5510-15 1.5492 1.5472 1.5445

MAIN ANALYSIS: The break above 1.5566 implies we had already seen a low at 1.5445. However, it still suggests another decline - but could see a deeper correction higher first. Thus, price is balanced in mid range with currently no bearish reversal indications. I suspect we'll see the recovery edge a little higher above 1.5587. There's a minimum target around 1.5598 with deeper retracement areas at 1.5619-44. Thus, from 1.5598 upwards we should be looking for bearish reversal indications. This should lead to losses back to 1.5445 - and below note the 1.5389-02 area and 1.5366 - even 1.5331...

COUNTER ANALYSIS: Only a break above 1.5706 would suggest a deeper recovery towards the 1.5813 high…

MEDIUM TERM ANALYSIS:
21st May: The downside has developed close to expectations and does not look complete. While the 1.5619-44 area caps there is still room for another decline below 1.5445 and to 1.5389-02 at least and I suspect a bit lower, noting 1.5366 also. The problem with this decline is that it could get deeper - to 1.5331 but should not break below 1.5089... Thus watch for bullish reversal indications.

Only below 1.5089 would send this directly lower.

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