Wednesday, 3 January 2018

GBP/USD found support at 23.6% Fibo

The GBP/USD pair retreated from the three and a half month high at 1.3612, but found support at the 23.6% Fibonacci retracement of latest November to January bullish run and currently is trading at 1.3525. Although the pair bounced form the daily low at 1.3491, remains down with 0.53% for the day. 
On the four hour time frame the price has crossed to below its 20-day SMA, which slowed down its bullish momentum, while the 100-day SMA is staying flat and is providing strong support at 1.34 handle. RSI is located around its mid-line and has started to lose directional strength. Stochastic and momentum and showing strong bearish slopes, but still hold above their mid-lines, which means that the buyers are not indicating interest.  
Nevertheless to switch into bullish mode again, the pair should first return to the daily high and then to conquer next resistance level at 1.3655. 



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