FX.co ★ Technical Analysis of GBP/USD for January 24, 2024

GBP/USD Bulls Try To Resume The Up Trend Again

Key Takeaways:

1. Mixed Signals: The GBP/USD showcases both bullish and bearish indicators, warranting cautious monitoring.
2. Critical Support Levels: Watch for the pair's interaction with key support levels for trend confirmation.
3. Momentum Indicators: The RSI and moving averages provide essential cues for potential trend reversals or continuations.

H4 Time Frame Technical Market Outlook: The GBP/USD pair has recently surged above the 50 MA on the H4 chart, reaching a high at 1.2723 before reversing. Bearish targets are identified at 1.2675 and 1.2645, which serve as intraday technical support. The resistance lies at 1.2723. The H4 chart's momentum is declining from positive to potentially neutral or negative, indicating a possible change in short-term outlook. A sustained break below 1.2615 to 1.2595 would shift the outlook to more bearish.

Trend Analysis: A rising trendline suggests an overall uptrend, providing support from the lower left to the right of the chart.

Moving Averages: The price sits above both the 100-period EMA (1.2696) and the 60-period DEMA (1.2701), suggesting dynamic support levels and a bullish sentiment.

Candlestick Patterns: Bullish Engulfing patterns signal strong buying interest and potential bullish reversals. Pin Bar formations indicate price rejection and possible reversal points.

Indicators: The RSI, at 57.79, shows moderate bullish momentum without reaching overbought conditions.

Swing Highs/Lows: A recent Swing High indicates a local maximum before retracement.

GBP/USD H1 Intraday Indicator Signals:

• Buy Signals: 17 out of 21 technical indicators.
• Neutral Signals: 2 indicators.
• Sell Signals: 2 indicators.
• Moving Averages: 12 show Buy signals, while 6 indicate Sell.

Sentiment Scoreboard: Current sentiment is bullish (58% bulls vs. 42% bears). Last week's sentiment mirrored this trend (58% bulls vs. 42% bears), with the past three days slightly more bullish (57% bulls vs. 43% bears).

Weekly Pivot Points:

• WR3 - 1.27727
• WR2 - 1.27416
• WR1 - 1.27282
• Weekly Pivot - 1.27105
• WS1 - 1.26971
• WS2 - 1.26794
• WS3 - 1.26483

Trading Insights:

• A downward break from the trendline may suggest a bearish shift, but bullish engulfing patterns and support level rebounds could signal a rally.
• The RSI's moderate level indicates reduced seller momentum, but not a definitive sign of an immediate reversal.
• Monitor the price action around the moving averages; a sustained position above the EMA and DEMA could signal renewed bullish momentum.
• Key short-term support levels are critical; a breach below these could lead to further declines

Useful Links

• More Artcles
• InstaForex Course for Beginners
• Open Trading Account

Important Notice

The begginers in forex trading need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp market fluctuations due to increased volatility. If you decide to trade during the news release, then always place stop orders to minimize losses.

Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. For successful trading, you need to have a clear trading plan and stay focues and disciplined. Spontaneous trading decision based on the current market situation is an inherently losing strategy for a scalper or daytrader.

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