GBP/USD Rangebound For Now; A Directional Move Likely Soon
2022.04.01 11:33
GBP/USD is trading quietly following a minor retracement from the support at 1.3000/1.3050. The pair is consolidating, forming mixed Doji candlesticks. It indicates uncertain market sentiment.
The RSI technical instrument goes along the 50-period moving average on the 4-hour chart. It means a flat market. On the daily chart, the RSI is moving in the lower area of 30/50, signaling strong interest in selling the currency pair.
The H4 Alligator shows a lot of intersections among moving averages which means a trading range. The D1 Alligator signals a downward move as moving averages is pointed upwards.
The daily chart indicates that the US dollar is regaining bullish momentum after a recent downward correction. The psychological level of 1.3000 is seen as the main pivot point.
Outlook and Trading Tips
Our strategy is to watch the price consolidation in the range of 1.3105/1.3180 because the speculative activity will follow soon. A breakout of any border will trigger new price swings. Let’s sum up the above-said information in trading signals.
After GBP/USD settles above 1.3185, it will make sense to open long positions with the target at 1.3220. Alternatively, if the currency pair settles below 1.3100, we will be able to open short positions aiming downward targets at 1.3060-1.3000.
Complex indicator analysis provides mixed signals both for an intraday and short-term strategy in the context of the trading range. Technical indicators generate sell signals amid the downtrend of GBP/USD in the medium term.
GBP/USD 4-hour chart.
