GBP/USD analysis for April 12, 2021
Looking at the graph on the four-hour time frame, we see that the GBP/USD pair is moving in a descending channel. The couple is currently finding support at 1,367,000, and for the second time, we are refusing in the same place. For a stronger bullish scenario, we need a break above MA20 and EMA20.
Our target is our top channel line and the zone between MA200 and EMA200 of 1.38000-1.38500. The European session of the pound started positively, and we can expect it to continue further towards the upper resistances on the chart for now. Following the MACD indicator, we see that the blue MACD line is currently above the signal line, and if it stays until the end of the day in that territory, it can expect the pound to be in a bullish trend this week.
On the daily time frame, we can use Fibonacci retracement levels. Based on that, we see that the GBP/USD pair finds support at 38.2% level at 1.6500. The day started bullish, and today’s target is moving averages MA20 and EMA20 at 1.38000. Our weekly target can be Fibonacci 23.6% level at 1.38700 and then the previous high at 1.39000. We need a break below 38.2% Fibonacci levels for the bearish scenario, and then we can analyze where we would look for support. Looking at the MACD indicator, we see that the blue MACD line is moving sideways with the probability of pointing upwards and forming a stronger signal for the bullish option.
On the weekly time frame, we see that the GBP/USD pair is currently testing moving averages MA20 and EMA20, which is support from June 2020. As support, we also have a Fibonacci retracement 23.6% level at 1.35700. In this time frame, we can see that the movement in the last two months has been moving in a descending channel, overcoming a similar pullback as last year, but in a longer period of time. To continue the bearish scenario, we need a break below the 23.6% level of Fibonacci, and then we look at targets below 1.35000. The MACD indicator is on our bearish side, and based on it, and we expect the bearish trend to continue.
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