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Technical Analysis: GBPUSD Key Resistance at 1.2800

Posted by Chris Advincula on Nov 11, 2016 6:51:49 AM

GBPUSD.11.11.2016.jpg 

(Nov 11 Friday) The daily chart shows a key resistance level formed at 1.2800. The market broke the 1.2800 former support on Oct 3. From then on fell further to the low of 1.1936 two days later on Oct. 5.

Sterling fell from the chart peak of 1.5015 Jun 21 and tested 1.2800 on July 5, soon after the Brexit vote. There was a noteable market chatter that sterling will fall to 1.2000, which ultimately became true on Oct 5.

The 14 daily moving average slopes down from 1.3230 with a rebound at 1.2200. However, the heavier 30 day moving average shows a decline to 1..2450 where the two converge. The 12200 level is the 14 DMA support.

There is a symmetrical half triangle formed with a break at the significant 1.2800 on Oct 5 and fell to 1.1936. 

The current spot GBPUSD has tested the intraday high today of 1.2674 from 1.2550 in Europe. Once again, the 1.2800 remains a crucial level.. The 14 day RSI shows a potential reversal at the 60 level equivalent to 1.2800.

The 14 day RSI shows the first overbought reversal at 64.27 = 1.4643 on Jun 23. While the second overbought level is 1.3440 Sept 5 RSI 61.59

The oversold RSI level low was 25.68 on July 5 soon after Brexit, and 20.32 on Oct 10.

 

Topics: GBPUSD, European Session, technical analysis, Forex, resistance and support levels

 

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