GBPUSD Analysis Today
Previous GBPUSD forecast talked about moving higher from the $1.22000 price level. The price started the week with a bearish Pin bar that was suggesting a move down.
The Pin bar formed right on the support level, but the support was without confirmation. The previous week breakout had no confirmation that the $1.22000 is acting as a support.
The bearish Pin bar was cancelled with Tuesday’s strong bullish engulfing bar that was a confirmation that the price will see higher levels.
The price moved strongly on Wednesday and reached the supply zone around $1.24600 resistance level. From there the price retraced down and confirmed the $1.23300 support level.
On Friday the price continued to move up and closed the day above Thursday’s bullish candle.
The price is heading to $1.24600 which is the next resistance level. If the price manages to close above $1.24600 the next target will be weekly resistance level at $1.26000.
Before that the price needs to break the $1.24200 level that was preventing previous attempts to move higher in the middle of December 2022.
After the price breaks $1.24600 we need to see the price retracing down and confirming that level as a support before trying to reach the $1.26000 weekly target.
If we take a look at the weekly time frame we can see the price has closed for the third week as a bullish week. The third week is the largest candle which is showing the bull’s strength.
The next resistance for the weekly time frame is at $1.26000, but before that we have daily resistance levels that were mentioned, $1.24600.
As it looks now the price is in the bullish trend and it is good to watch buy entries around the support level.
The price is now in the middle, between support and resistance levels so I am not looking for entries at the moment.
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