Morning Market Update – GBP/USD

Intraday bias in GBP/USD remains on the upside for the moment. Current rally could target 1.3021 key resistance. But still, price actions from 1.2979 are viewed as a corrective pattern. Hence, we’ll look for topping the signal again around current levels. On the downside, below 1.2979 minor support will turn the bias neutral first.

Considering the bigger picture, overall, price actions from 1.2979 medium term low are seen as a corrective pattern that is still in progress. While further upside is expected, larger outlook remains bullish as long as 1.2979 key support holds. The recent strong candle support is followed by a corrective move which looks to gain some momentum.

However, the retracement has bounced today from the previous breakout support band, having posted a low at 1.2979. The longer the market holds on to this band of resistance-turned-support, the more confident the bulls will be. Momentum is still strong with the Stochastic rising. The next move is for the bulls to breakout above Friday’s high at 1.3021 and to continue the bull run, failing which there could be a degree of tiredness creeping in. The four hourly chart indicates an unwinding of near term momentum to levels where the bulls have inclined to support. Subsequent upside resistance is 1.3021. The bulls will remain in control above 1.2979.

The GBPUSD pair provided some support trading at the lows but it returns to fluctuate around this levels again. The price is still organized inside the support area that appears on the four-hour chart, which keeps the general bullish trend scenario valid for the upcoming period, waiting to head towards 1.3021 followed by 1.30651 levels mainly.

Stochastic attempts to get rid of its negativity and to gain the positive momentum on the intraday timeframes to support the continuation of the suggested bullish trend, while in general, the bullish bias will remain valid for the upcoming period unless breaking 1.2979 level and holding below it.

Expected trading range for today is between 1.2979 support and 1.3021resistance.

Expected trend for today: Bullish
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