1.3675 Resistance Likely To Reverse Gains on GBPUSD

Launch Chart
farhan fazal
GBPUSD
·
Feb 17 2022
Take Profit +1.59%
Holding time 6d8hr
1.36030
Entry price
1.33870
Take profit price
snapshot
“A further escalation of geopolitical tensions could weigh on GBP/USD while a positive shift in risk sentiment could open the door for additional gains.”
“If GBP/USD manages to climb above 1.3600 (psychological level, static level) and starts using that level as support, 1.3620 (static level) and 1.3645 (February 10 high) could be targeted.”
“In case a four-hour candle closes below key support at 1.3560 (200-period SMA, Fibonacci 23.6% retracement of the latest uptrend), an extended decline toward 1.3520 (Fibonacci 38.2% retracement, 100-period SMA) and 1.3500 (psychological level) could be witnessed.”
However, a convergence of the 200-SMA and 50% Fibonacci retracement (Fibo.) of January 13-27 downside, around 1.3550, triggered the quote’s corrective pullback that currently aims for a downward sloping trend line from January 20, near 1.3600.
Although the bullish MACD signals keep buyers hopeful, 61.8% Fibo. adds to the upside filters around 1.3605 to challenge the quote’s further advances.
In a case where GBP/USD rises past 1.3605, the upper line of the monthly trading range near 1.3630 will test the buyers.
Meanwhile, pullback moves below 1.3550 support confluence will aim for the 38.2% Fibonacci retracement and lower end of the nearby range, around 1.3510 and 1.3480 respectively.
During the GBP/USD weakness past-1.3480, 23.6% Fibo. level of 1.3450 may test the bears before directing them to January’s low of 1.3357.
GBP has to close above 1.3645 before a sustained advance is likely. The chance of GBP closing above 1.3645 is not high for now but it would increase as long as GBP does not move below 1.3520 within these couple of days. Looking ahead, the next resistance above 1.3645 is another rather strong level at 1.3680.