Overview:- Massive bullish attempt can be seen in every pair where GBP is the base currency. By observing the daily technical chart we can see that earlier pair was trading and moving in a downtrend and a downtrend line was also lying on the chart which was providing strength to the bears, pair made a steep downfall from 1.7553 to 1.6352 level continuously without any hurdle.
After arriving at 1.6352 level we witnessed a upside movement and few trend reversal candlesticks have been posted on the chart like hammer followed by two consecutive bullish marabuzo candlesticks which is generating bullish signal for upcoming week.
Technical Analysis:- The current picture indicates that bears are struggling now and bulls are snatching the bite from bear’s mouth, overall pair is showing bullish momentum and trading above the downtrend line which means that bulls have taken the charge and it will not lose the grip from the market in early phase. A bullish crossover on MACD indicator is favoring the bulls and providing us bullish signal for the time being and RSI is also providing bullish signal from oversold territory.
What Next:- Today’s closing matter a lot, if bulls trades and settles above the 1.6660 then we will get confirmation of trend reversal and we may further upside momentum and we may announce that pair has bottomed out from short term point of view. The way bulls are reacting it seems like a massive rally is on the cards. Well Odds are in favor of bulls and intraday bias remains bullish on the pair above 1.660 levels remain intact. The 1.6750 level is immediate resistance level followed by 1.6800 whereas 1.6500 level is strong key support level followed by 1.6450 level.
Trade idea:– Based on chart and study above we would suggest that one can go for above 1.6660 level for the target of 1.6800 and 1.6900 for the target of 1.6350 level. A weekly closing above 1.6900 level will confirmation the further buying till 1.7200 in coming weeks.
