Forex Video Briefing (11/27) – GBP/USD Tests Price Bottmo
There was a range roughly between 1.5586 and 1.5735 (about 150 pips). This week, price broke above 1.5735, making the 2-week range a price bottom. The 4H chart shows that price also pushed above the 100- and 50-period simple moving averages while the RSI pushed above 60, showing loss of bearish bias and momentum.
As we get into the 11/27 US session, where we are expecting low volume, we are seeing some USD-strength, and cable is retreating from 1.5825. The 1.5825 area was a previous support area earlier in November. As the market retreats from this pivot, it is now testing the recently made price bottom.
If the market is still in the bullish correction mode, it should respect the 1.57 area ,and a rising speedline. Maybe we can give it some elbow space below 1.57, but we need to see price climb back above 1.5735 if the bullish correction mode is still on.
However, if price starts to hold below 1.5735 and falls below 1.57, we are possibly in a bearish continuation mode, which would first put pressure on the 1.5586 low on the year, with risk of falling towards the 1.55 handle.