Overview:- By analyzing the daily technical chart we can see that pair is doing well for buyers and it marked a fabulous rally from 1.2199 to 1.3011 level continuously and after that we have seen a small correction till 1.2787 level which was another opportunity to buy for those who have missed earlier. The pair is again heading towards north side and it seems like bulls are not going to stop in early phase as long as it is trading above the 200 SMA line which is lying at 1.2700 level which is also a psychological level and a vital support level.
in the last month pair has marked fabulous moment towards north side and covered all the losses in just few days. overall bulls are rocking and making 6th month’s fresh high 1.2950 level.
Fundamental Analysis:- The pair bounced back on the positive news of Brexit deal negotiation, All gbp pairs where it’s a base currency has become so volatile so in a volatility just trust on the trend. Following several market talks and rumors, the latest catalyst came from French President Macron. Who said that a Brexit agreement was being finalized, reinforced by comments from German Chancellor Angela Merkel, who said that Brexit talks are now in the “final meters.”
Technical Analysis:- From technical prospective we can see that a bullish flag pattern has been posted on the chart which is providing us bullish signal and the way bulls are reacting it seems like they are approaching the 1.3200 and 1.3400 level in coming sessions. The short term trend is up so in an uptrend market always buy on dips will be profitable strategy. Pair is moving above the minor and major EMA lines (9,14 and 50 and 200 SMA), candles are also providing us bullish signal.
The bullish crossover on MACD indicator is favoring the bulls.RSI has turned up near to 70 level which is showing strength in the pair. Well traders are advised to go for long as long as 1.2700 level remains intact. The primary trend has changed from bearish to bullish. Everyday bullish marabuzo candlesticks are posting on the chart which is flashing the bullish signal.
What next:- Odds are in favor of bulls and intraday bias remains bullish on the pair as long as 1.2700 level remains intact. On contrary If bears take the charge and settles below 1.2700 level then we may see further weakness in the pair The 1.3160 level is immediate resistance level followed by 1.3250 whereas 1.2810 level is strong key support level followed by 1.2700 level.
Trade idea:- Based on chart and studies above we can suggest that buy the pair around current levels 1.2940-30 target is 1.3040 and 1.3100 sl is 1.2750 level.
