Daily Forex Technicals |
Written by FXTimes |
Apr 02 13 13:44 GMT
GBP/USD Retreats from March High; Suggests False Breakout Scenario
Trendline break: To start the week, GBP/USD looked like it was about to confirm a break above a falling trendline. However, when it got to last week’s and the March high of 1.5259 it retreated, making the case for a false breakout to the upside, which could also suggest bearish continuation. Price action is already focusing on some recent lows around 1.51, a break and hold below which could turn the bias back to the downside.
Targets: Clearing 1.5025 would open up the 1.4830 low. In this scenario, we would either be in a medium term (month or 2 long) consolidation, or we could be in a bearish continuation if price extends below 1.4830. At this point, holding above 1.51 and pushing above 1.5260 would be needed to reintroduce the bullish outlook, which has 1.5320 resistance pivot and then 1.5422, 38.2% retracement in sight.
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