Monthly: Moved higher from the 2016 low of 1.1905. Levels close to be bespoke resistance at 1.4390 found sellers. Aprils price action formed bearish Outside Bar, often an indication that the rally (correction) has come to an end. Follow through selling pressure has resulted in GBPUSD trading to the lowest level in 5 months. Reverse trend line support is located at 1.2855
Weekly: After completing a bullish Elliott Wave pattern (5-waves) a bearish Outside Week was posted from the high (1.4377). Four consecutive negative weekly performances have resulted in GBPUSD breaking the channel formation to the downside. Reverse trend line resistance is located at 1.3801. NOTE: the 61.8% pullback level (from the 1.1897-1.4364 move) is located at 1.2848. This is close to reverse trend line support (monthly) and is the prime medium-term target (or reversal)
Daily: DeMark indicators have posted a 13 count on the daily chart. The projected stop is seen at 1.3301. Wednesdays price action made a low of 1.3305. We are trading at oversold extremes.
Intraday (four-hours) – The intraday chart highlights and Ending Wedge. A break of 1.3415 and the measured move is 1.3610. This has resulted in the immediate bias being bullish. With bespoke resistance at 1.3700, we look for any extended rallies (recovery) to be limited. The medium-term outlook remains bearish (on rallies)
