[Monthly Chart] - GBPUSD is making up a dark cloud cover pattern this month. with 7 to 8 trading days remaining in August, I do not expect it to reverse the formation. There's no big figures pending this week that might drive it up so drastically. Which also means, no big figure from the UK itself to crash it down violently?
[Weekly Chart]
[Daily Chart]
Last week has been trading within in a tight range, with 1.5550 being a very solid support, until the last day. The week closed with a black candle closing below the S1 mentioned last week, though being supported by S2, and EMA50. On weekly chart, Chikou has bounced back by price action.
[4-hourly Chart]
EMA200 support has been very solid (more so on Netdania chart). Thick bearish Kumo ahead.
In a nutshell:
S1 - EMA200 on 4-hourly Chart
S2 - 1.5460 (last week's low) to 1.5433 (daily EMA200)
S3 - 1.5340 (weekly Kumo bottom)
R1 - 1.5550 (previous support)
R2 - 1.5622 (or 4-hourly EMA50)
R3 - 1.5769 (4-hourly Kumo top)
General sentiment is bearish, with daily EMA200, and then EMA50, being crucial supports. Breaking R3 (1.5769) might mean an end to current bearish sentiment and might go for 1.6000 region.
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