GBP Technical Analysis

The short setup at current would be an iteration of selling resistance at old support with not only the under-side of this bear flag, but also prior price action. The current price zone around 1.4152 is also the 61.8% Fibonacci retracement of the most recent major move, taking the February 2016 high-low range. This can open the door for stops to be cast just above the previous swing low, using the 1.4217 Fibonacci level as basis. Traders can look to place stops at 1.4225 with targets cast towards 1.4078 (prior price action swing low), 1.4031 (76.4% retracement of that same most recent major move), and then 1.3917 (the 27.2% extension of the prior major move).

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W1 price is on bearish breakdown since the middle of December last year: price broke Yearly Central Pivot at 182.60 to below together with S1 Pivot at 169.34 and S2 Pivot at 161.60. The bearish breakdown is going to be continuing now with S3 Pivot at 148.34 as the nearest bearish target.

Instrument	S3 Pivot	S2 Pivot	S1 Pivot	Yearly PP	R1 Pivot
GBP/JPY	148.34	161.60	169.34	182.60	190.34

Trend:

• W1 - bearish breakdown

• Chinkou Span line is crossing the price to above for the breakout to be started.
• The price is breaking Senkou Span line together with Ichimoku cloud to the bullish reversal.
• Symmetric triangle pattern is going to be broken by the price to above for the bullish reversal to be started.
• AbsoluteStrength indicator is eastimating the bullish trend in the near future.
• If the price breaks 1.4202 resistance and 1.4282 resistance to above so the bullish breakout will be continuing, otherwise - ranging.

Weekly price is on ranging market condition located within 100 SMA/200 SMS ranging area waiting for direction. The price is testing Fibo support level at 1.8101 to below for the reversal of the price movement from the ranging bullish to the primary bearish market condition.

Resistance	Support
1.9160	1.8101
2.0948	N/A

• if weekly price breaks 1.9160 resistance so the primary bullish trend will be continuing but with secondary ranging;
• if weekly price breaks 1.8101 support level so the reversal of the price movement from the ranging bullish to the primary bearish market condition will be started;
• if not so the price will be moved within the channel of the levels to be inside weekly ranging area.

D1 price broke Senkou Span line to above for the reversal of the price movement from the primary bearish to the ranging bullish market condition: the price is located tobe inside Ichimoku cloud for the 1.9446 resistance level to be started for the bulliush trend to be continuing.

Absolute Strength indicator is estimating the primary bullish trend, Trend Strength indicator is estimating the bullosh to be continuing in the future, and Chinkou Span line is evaluating the trend as the ranging bullish condition.

Daily price is on ranging bearish located near and below Senkou Span line which is the virtual border between the primary bearish and the primary bullish trend on the chart. The price is trying to break symmetric triangle pattern to above together with Senkou Span line for the bullish reversal of the price movement.

If the price breaks 2.1121 resistance level on close daily bar so the bullish reversal will be started.
If the price breaks 2.0355 support level to below so the primary bearish trend will be continuing.
If not so the price will be on ranging within the primary bearish.

To trade the reversal, traders can look to place stops below this recent batch of support, with the low being 154.39, set earlier today. Traders can move that stop slightly below those lows at ~154.25 to take on approximately 80 pips of risk with current prices. Traders can then plot a scale-out approach in the effort of getting the average exit of the reversal a bit higher. The first level of interest for profit targets is at another well-tested Fibonacci level at 156.35. Should price action move up here, which would be slightly better than a 1-to1.5 risk-reward ratio, traders can begin to scale out of the lot, moving the stop to break-even on the remainder. After that, 157.21 becomes an interesting level for a secondary target, followed by 159.05 for a tertiary target.

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GBP/USD
Weekly

-FXTW has maintained that “GBP/USD trade remains constructive for a run at trendline resistance (about 1.4900) but watch for support at the internal trendline that crosses through inflection points since September. FXTW would like to see support register at that line in order to maintain a constructive view. Remember, there is a 96 month (8 year) cycle low count.” Support registered near (a few ticks above) the mentioned line. The re-test sets the stage for continuation of strength.

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Daily price is crossed 100 SMA/200 SMA reversal area for the bearish breakdown: the price was bounced from 1.3522 support level for the possible secondary rally to be started or for the primary bearish trend to be continuing.

• If the price will break 1.3779 resistance level so the local uptrend as the secondary market rally within the primary bearish condition will be started.
• If price will break 1.3522 support so the bearish trend will be continuing.
• If not so the price will be ranging within the levels.

Daily price is located below Ichimoku cloud on the bearish area of the chart: the price is started with secondary market rally with 1.8434 resistance level to be broken for the rally to be continuing and with 1.8789 resistance level as a nearest bullish reversal target. Alternative? if 1.8789 resistance is not going to be broken on close daily bar so the price will be started on the secondary ranging condition within the primary bearish trend.