Home Forex Markets GBP/USD immediate trend analysis: short-term consolidation or end, be wary of accelerating downward

GBP/USD immediate trend analysis: short-term consolidation or end, be wary of accelerating downward

by WOOWinvest
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GBP/USD immediate trend analysis: short-term consolidation or end, be wary of accelerating downward

Recently, non-US currencies have maintained a narrow range, and as the pound falls below the support first, the market volatility will increase, and be alert to the accelerated decline of the pound.

GBP/USD remains in a downward trend as a whole. As the exchange rate falls below the recent major support, GBP may start a new round of volatile downward trend.

Sterling continued the downward trend of last year. After the rebound this year was capped at 1.3650, the exchange rate accelerated down after breaking the 1.3000 mark, and then fell further below 1.2400.

Then the pound hit the 1.2000 mark and entered the 1.2180-1.2400 sideways, and the trend gradually confirmed the 1.2180 support and 1.2300 resistance, indicating that once the pound breaks through the volatility area, it is expected to accelerate the volatility.

From an overall point of view, after the rebound is blocked, it is possible to start a new round of downward consolidation at an important support. The band and trend should pay attention to the previous low of 1.2000. In the short-term, a breakout of the range would confirm the 1.2180 resistance strength and trigger a further downside move, which would in turn lead to a shift from local bears to overall bears.

It is advisable to take 1.2180-1.2200 as the reference resistance, and take the idea of ​​shorting on rallies against the resistance, and look at the support of 1.2080-1.2050 and 1.2000-1.2030. If the exchange rate returns to the top of 1.2200, it is possible to confirm the false breakthrough. After observing the next day, consider backhand to do more, and look back to the top of 1.2300.

(by Arthur) Follow me on Twitter @ArthurZ22426704

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