April 12, 2019 : shall the GBP/USD respect the current confluence of supply levels around 1.3150-1.3170.

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On January 2nd, the market initiated the depicted uptrend line around 1.2380.

This uptrend managed to initiate two successive bullish waves towards 1.3200 (Jan. 25) then 1.3350 (Feb. 27) before the bearish pullback brought the GBPUSD pair towards the uptrend on March 8th.

A weekly bearish gap pushed the pair below the uptrend line (almost reaching 1.2960) before the bullish breakout above short-term bearish channel was achieved on March 11.

Shortly after, the GBPUSD pair demonstrated weak bullish momentum towards 1.3200 then 1.3360 where the GBPUSD failed to achieve a higher high above the previous top achieved on February 27.

Instead, the depicted bearish channel was established.

Significant bearish pressure was demonstrated towards 1.3150 - 1.3120 where the depicted uptrend line failed to provide any bullish support leading to obvious bearish breakdown.

On March 29, the price levels of 1.2980 (the lower limit of the depicted movement channel) demonstrated significant bullish rejection. This brought the GBPUSD pair again towards the price zone of (1.3160-1.3180) where the upper limit of the depicted bearish channel as well as the backside of the depicted uptrend line came to meet the pair.

Currently, the price zone of 1.3140-1.3170 currently corresponds to the upper limit of the depicted bearish channel where another bearish movement may be initiated.

Bearish rejection is still anticipated around the current price levels (1.3140-1.3170).

Further bearish decline is expected towards 1.2920-1.2900 where the lower limit of the depicted channel is located.

Trade Recommendations:

Any bullish pullback towards 1.3150-1.3170 should be considered for another SELL entry. TP levels to be located around 1.3100, 1.3020 then 1.2950 - 1.2920.

S/L to be located above 1.3190.

The material has been provided by InstaForex Company - www.instaforex.com

April 12, 2019 : EUR/USD demonstrating recent bearish rejection around 1.1320, shall it hold ?

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On January 10th, the market initiated the depicted bearish channel around 1.1570.

Since then, the EURUSD pair has been moving within the depicted channel with slight bearish tendency.

On March 7th, recent bearish movement was demonstrated towards 1.1175 (channel's lower limit) where significant bullish recovery was demonstrated.

Bullish persistence above 1.1270 enhanced further bullish advancement towards 1.1290-1.1315 (the Highlighted-Zone) which failed to provide adequate bearish pressure.

On March 18, a significant bullish attempt was executed above 1.1380 (the upper limit of the Highlighted-channel) demonstrating a false/temporary bullish breakout.

On March 22, significant bearish pressure was demonstrated towards 1.1280 then 1.1220.

By the end of last week, a bullish Head and Shoulders reversal pattern was demonstrated around 1.1200.

As expected, this enhanced further bullish advancement towards 1.1300-1.1315 (supply zone) where recent bearish rejection is being demonstrated now.

Short-term outlook turns to become bearish towards 1.1280 (61.8% Fibonacci) where price action should be watched cautiously.

For Intraday traders, the price zone around 1.1280 stands as a prominent demand area to be watched for another valid BUY entry if enough bullish rejection is expressed.

On the other hand, bearish breakdown below 1.1280 opens the way for further bearish decline towards 1.1250-1.1235.

Trade recommendations :

Conservative traders were suggested to have a valid BUY entry around 1.1235. It's running in profits now.

TP levels to be located around 1.1320 and 1.1440. SL should be advanced to 1.1270 to offset the associated risk.

The material has been provided by InstaForex Company - www.instaforex.com