Weekly Technical Outlook: GPB/USD ; Market Forecasts for June 5th – June 10th
- Resistance level 1.2906
- Pivot Level 1.2846
- Support Level 1.2661, 1.2557 and 1.2488
Technical Analysis
Daily bias in GBP/USD remains bearish with 1.2906 resistances intact and deeper decline is still expected as long as the resistances hold the area.
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The price action stays below resistances so far at this point and closes in the coming week below these levels. Such a decline is viewed as a correction.
Thus, we’d expect resistance to hold the area and the pair remains bearish this week indicating a bearish reversal.
The pair continues with the downside bias price action and signals a two bar reversal bearish movement with rejection at resistance area closed below the trend line and stochastic oscillator currently at 48.0 levels.
When the pair closes below the rejection of trend line, there is a clear indication of trend reversal shifting the momentum.
Current development suggests that the medium term downside is expected to be further low and the focus shall be at 1.2661 levels. Any break here should make lower lows with 1.2557 levels.
Economic:
- BRC Like-For-Like Retail Sales, RICS Housing Price Balance, Parliamentary Election
- Industrial Production, Manufacturing Production, Consumer Inflation Expectations
- ISM Non-Manufacturing PMI, Initial Jobless Claims
Area of Interest
- Strong resistance at 1.2906 area and closed below resistance levels.
- Bearish reversal strongly closing below the rejection of trend line with two bar signal.
- Price action closed below trend line and oscillator below 48.0 levels indicating shift in momentum.
- At Flip Area on Daily time frame resistance levels.
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