GBP/USD Survey according to the Linear Regression Channels over the past two weeks:
- GBP/USD respected the upper limit of both channels depicted on the chart which showed bearish presence pushing the pair down to 1.5802. However, Price came back quickly to break this channel with quite strong bullish 4H candlestick.
- After failure to trade below 1.5800, GBP/USD pair directed towards 1.5925 which is corresponding to the upper limit of the bullish blue channel & still trading around the same level.
- GBP/USD showed quite strong bearish rejection on testing the high for this month at 1.5927 & failed to bypass its strong resistance area at 1.5940-1.5960.
This will probably delay further bullish movement and push the pair down to 1.5860-1.5840.
- Broken limit of the violet channel at 1.5850 is now acting as support level for the pair.
4H closure above 1.5960 allows the pair to reach 1.6050.
The 1H chart of GBP/USD shows that the pair has an important support level at 1.5900 which is the lower limit of both the Violet & Yellow channels.
This price level 1.5900 is significant as Bullish Price Action towards it pushes the pair to the upside reaching 1.5950 initially.
Break of this level will allow the pair to reach 1.5850 which is corresponding to the lower limit of the Yellow bullish channel which constitutes an important support for the pair today.
We should pay attention as the 1H chart shows some bullish weakness unlike the 4H chart which is still bullish as long as the pair is trading above 1.5850.
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