The Daily Picture: GBP/USD

Market Commentary : GBP/USD 1-Hour chart

Weekly gap opening has been rapidly erased as GBP has been rejected towars the 1.7450 - 1.7500 support zone. Daily studies are quite oversold as shows sings of possible recovery. However, short-term technicals rules price action and every attempts higher are still rejected.

To the downside, consolidation triangle still valid since yesterday, currently tested. Triangle low comes at 1.7550 and a sustained break and hourly close below this level argue in favor of another support zone test. S1 stands at 1.7505, ahead of weekly low at 1.7470, witch are two potential target points. Below, 1.4710 and 1.7370 may be easily reached.

To the upside, no clear break below consolidation pattern will lead to a test higher. Triangle high and 38.2%% fib. level (of fall from 1.7975 to 1.7470) stands at 1.7660 and remain a good target for intraday longs. Above, congestion/resistance zone extends to 1.7700/20, and price must clear this level to expect a run towards R2 and 200 EMA at 1.7805/25.

Indicator's Status :

• Slow MACD neutral. As a lagging indicator, breka of triangle is needed to see a clear crossing signal.
• Fast stochastic still in a negative cycle, downside mode. Bias remain negative.
• Both RSI and W%R neutral to negative. Bias remain negative. Monitor overbought/sold status according to price level to determine intraday trend continuation or reversal.

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