GBP catches a solid bid – breaks above Median Andrew Pitchfork line

Intermediate
  • Sterling jumped on Thursday after Germany’s Angela Merkel says Brexit backstop solution is possible by October 31st.
  • In response GBP/USD pushed to its highest since late July, breaking above the median line of a bearish Andrews Pitchfork.
  • Close above 1.2249/50 could allow GBP to continue higher, targeting the following key upside levels:
    •  c.1.2335 – Upper line of Andrews Pitchfork (AP) – Had stopped the late June rally. 
    • 1.2360/80 – 50 EMA & price resistance. 
  • Pair has broken above the 21 EMA at 1.2194 for the first time since June, suggesting the market is repositioning itself.
  • Momentum setups push higher with the RSI, currently at 51, breaking above a downtrend line taken from May. 
  • Be aware that the underlying trend remains negative and these higher levels may provide sellers much better levels to sell into.
GBPUSD Chart 2019-08-22

Editor

Akif SH. Din MSTA, CFTe, 2018 Bronwen Wood Memorial Prize Winner, has a solid understanding of global markets, fundamental analysis as well as having a vast amount of knowledge in technical analysi...continued

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