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Technical Analysis – Charts of The Week

Trade Insights – GBP/USD – Chart shows Viable Long positions above the Major Pivot point at 136.55, targeting the key resistance zone at 138.05 and then the next resistance at 139.00 to 139.30. Alternatively, Short positions below the Pivot of 136.55 target the Key Support level at 135.75 and after then the Support Zone at 134.70 to 134.40.

GBP/USD

  • Resistance Zone: 139.00 to 139.30
  • Key Resistance Level: 138.05
  • Major Pivot Point: 136.55
  • Key Support Level: 135.75
  • Support Zone: 134.70 to 134.40
  • Last Analysis Date: Blue Vertical Lines
  • 200 Day EMA – Green Line
  • 50 Day EMA – Red Line

Trade Insights – GBP/USD – Chart shows Viable Long positions above the Major Pivot point at 136.55, targeting the key resistance zone at 138.05 and then the next resistance at 139.00 to 139.30.

Alternatively, Short positions below the Pivot of 136.55 target the Key Support level at 135.75 and after then the Support Zone at 134.70 to 134.40.

 GBP/USD Daily Chart

Chart Analysis:

Directional bias: 2 Weeks GBP/USD

The chart shows that the GBP/USD pair has now moved out of the downward parallel channel that was seen in the last analysis on 13th October. This indicates the bullish bias of the market and probably a change is taking place in the ongoing downtrend.

Due to these changes in the past 2 weeks the Key Resistance level has moved up to 138.05 and the Resistance Zone shifted higher between 139.00 to 139.30 showing viable long positions are possible at this stage targeting the resistance levels on the chart. At the time of the analysis, the pair is trading just above the Pivot point at 136.55 and just below the 50-Day EMA and the 200-day EMA lines.

If the prices drop below the Pivot at 136.55 support level, then possible short positions targeting the Key Support at 135.75. With further weakness, the pair could slide towards the Support zone between 134.70 to 134.40.

Fundamental Overview: For GBP/USD pair the next two days are quite crucial. Today there is the release of the Fed Rate decision and Tomorrow is the day for the NFP data. It has been expected that at the November Fed meeting Jerome Powell is going to announce Fed’s rate and tapering decision. The UK is another economy that is looking at a near time rate hikes and it together it could be a topside scenario for the GBP/USD pair.

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Disclaimer

The information provided is of a general nature and is not intended to be personalised financial advice. The information provided is not intended to be a substitute for professional advice. You may seek appropriate personalised financial advice from a qualified professional to suit your individual circumstances.

Trading in Rockfort Markets derivative products may not be suitable for everyone as derivative products may be considered as high risk. Please ensure that you understand the risks involved. A Product Disclosure Statement can be obtained here and should be considered before trading with us.

Vishal R

November 4, 2021

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