From Investor to Scalper – series of studies created in cooperation with broker BDSwiss, in which we take a financial instrument and the analysis includes a detailed look at the value from the monthly chart and ending with 5/15 minutes.
Let’s start analysis from historical chart where we can clearly see effect of Brexit referendum in which British citizens decided to leave European Union. Since then we are below key support at 1.3900 which now is crucial resistance. The price of GBPUSD is right now at lowest since May 1985.
Historical lows were set in January 1985 – it is at 1.0790.
GBPUSD is acting great in the trend on the weekly chart. Thanks to that we can notice well respected supports and resistances. We can set two-year long bearish trend line which was never broken. Considering that bullish correction always end in the place where trend line coincides with important resistance we can set nor only range but also estimated time of correction. It is worth to notice important level 1.2870 which can be important resistance.
Pro-bullish scenario is also supported by half-year bearish gap which should be at least closed before further losses. What’s more 1.3860 support was still not tested from below as new resistance.
On the daily chart we can see that market for almost two months moves in bullish channel. Currently we are near lower bound of the pattern. If gains should be continued there should be strong bullish reaction in this area.
Even if market will break below from the channel in 1.2335 area it should meet strong support which is lower bound of 4-week long consolidation which is the same size as previous box.
Looking at H1 chart we can see that market for a long time moves in consolidation. However since last week bears became weaker so we can see higher lows.
On M15 chart we can see that because of dynamic decreases market reached to local support coinciding with 70.7% Fibonacci correction of yesterday’s gains. Reject of this level can bring appreciation back to 1.2525 area.
