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Technical analysis of GBP/USD for July 16, 2020
Overview:
The GBP/USD pair continued to move upwards from the level of 1.2511. This week, the pair has risen from the level of 1.2511 (the level of 1.2511 coincides with the ratio of 23.6% Fibonacci Expansion) to the top around 1.2623. But t rebounded to close at the 1.2550 price.
In consequence, the GBP/USD pair broke resistance at 1.2541, which turned into strong support at the level of 1.2541. In the H1 time frame, the level of 1.2541 is expected to act as major support today.
Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish market. The price will across the moving average (100) and (50) sooner.
From this point, we expect the GBP/USD pair to continue moving in the bullish trend from the support level of 1.2541 towards the target level of 1.2623. If the pair succeeds in passing through the level of 1.2623, the market will indicate the bullish opportunity above the level of 1.2623 so as to reach the second target at 1.2669 so as to form a double top.
At the same time, if the GBP/USD pair is able to break out the level of 1.2462, the market will decline further to 1.2360 (daily support 2).
The material has been provided by InstaForex Company – www.instaforex.com
