GBPUSD – Ending Wedge Highlights a Bullish Bias 2018-08-09
Monthly: The pair moved higher from the 2016 lows of 1.1905. Levels close to the bespoke resistance at 1.4390 found sellers. April’s price action formed a 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 11 months.
Weekly: After completing a bullish Elliott Wave pattern (5-waves) a bearish Outside Week was posted from the high (1.4377). The Cable is now trading close to the 61.8% pullback level of 1.2842.
Daily: Mixed trading for the last 23 days. This has resulted in an Ending Wedge formation being posted. A break of 1.3100 and the measured move target is 1.3362. Bullish divergence can be seen on the daily chart (chart make lower lows while the RSI makes a higher low). Trendline support is located at 1.2842, the same level as the aforementioned Fibonacci support. We look to buy dips.