GBP/USD Technical Analysis: Cable Tsunami

GBP/USD jumps 150 pips as Germany and UK are said to drop key Brexit demands - Beginning of the end of the bull trend

5 September 2018, 16:40

•Bulls are challenging the GBP/USD main bear trend as the market jumped more than 150 pips in a few minutes after it has been reported that the UK and Germany drop critical Brexit demands.
•GBP/USD is breaking through 1.2957 July 19 key swing low as the bears are selling their positions at a loss and new bulls are jumping in.
•GBP/USD is now back above the 50, 100 and 200-period simple moving average and the next main target is 1.3050 swing high. A breakout above it would most likely put an end to the protracted bear trend. A bear breakout below 1.2800 would invalidate the bullish bias.

GBP/USD 4-hour chart

Spot rate: 1.2968
Relative change: 0.86%
High: 1.2984
Low: 1.2785

Main trend: Bearish
Short-term trend: Bullish above 1.2800

Resistance 1: 1.2957 July 19 swing low
Resistance 2: 1.3000 figure
Resistance 3: 1.3050 August 30 swing high, key level
Resistance 4: 1.3082-1.3100 supply/demand level and figure

Support 1: 1.2957 July 19 swing low
Support 2: 1.2937 August 22 swing high
Support 3: 1.2900 figure
Support 4: 1.2868 August 22 low
Support 5: 1.2845, August 29 low
Support 6: 1.2800 August 24 swing low

GBP/USD 0001-01-01T00:00:00

0/0 (0%)

H0 L0

S3

S2

S1

R1

R2

R3

1.2750 1.2780 1.2817 1.2884 1.2915 1.2952

Trend Index

OB/OS Index

StronglyBearish Neutral