GBP/USD Market Analysis
In this post, we analyze the recent market behavior of GBP/USD based on the latest charts. The analysis focuses on potential key levels and trading setups that may emerge over the coming days. The GBP/USD pair has shown notable price movements and could present lucrative trading opportunities. Below, we delve into the details of three charts to identify possible scenarios.
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Daily Chart Overview:
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The daily chart reveals a significant break above the previous resistance level around 1.3330-1.3350, which has now turned into a support zone. This break signals bullish strength, with a clean retest of the former resistance area, confirming it as new support. The next key level to watch is 1.3438, where GBP/USD could potentially face resistance again.
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Key Levels:
- Resistance: 1.3438
- Support: 1.3330
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Trade Idea: The break and retest provide a bullish setup. A pullback to the 1.3330 area could be a good entry point, with a potential target around the 1.3438 resistance zone. If the price breaks above 1.3438, further bullish momentum could drive it higher towards 1.3500.
4-Hour Chart Analysis:
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On the 4-hour chart, GBP/USD is trading within a rising wedge, and there are multiple rejections along the upper boundary of this wedge. The recent price action shows that the pair is currently testing the upper limit again. The price remains in an upward channel, but we should remain cautious of a potential correction within the wedge.
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Key Levels:
- Resistance: 1.3400-1.3410
- Support: 1.3300 (lower boundary of the wedge)
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Trade Idea: Traders should watch for a breakout from the wedge. A bearish divergence might lead to a pullback to the lower boundary of the wedge around 1.3300, presenting a buying opportunity for a potential continuation higher. Conversely, a break above 1.3400 could signal further upside towards the 1.3438 daily resistance area.
1-Hour Chart View:
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The 1-hour chart illustrates more short-term price movement. The price is consolidating near the top of the wedge formation, with a slight pullback expected before further upside. The wedge pattern is still in play, and traders can use this to anticipate price behavior.
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Key Levels:
- Target: 1.3410-1.3438 (potential profit area)
- Support: 1.3300 (gray box area where buying interest could appear)
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Trade Idea: A short-term pullback to 1.3300 might offer a buying opportunity, targeting the upper wedge limit and the 1.3410 area. However, if the price breaks below 1.3300, caution is advised as a deeper correction could occur.
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Summary:
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09/24/2024
