In today's analysis, we will explore the GBPUSD currency pair, currently trading at 1.37284 USD. This detailed market analysis will cover both daily and 4-hour time frames, utilizing various technical indicators such as Fibonacci retracement levels, Exponential Moving Averages (EMA), Relative Strength Index (RSI) divergence, weekly and daily pivots, Smart Money Concepts (SMC), support and resistance levels, order blocks, and the Moving Average Convergence Divergence (MACD). By incorporating these indicators, we aim to provide a comprehensive overview that can assist traders in making informed decisions in the dynamic forex market.
Current Market Overview
As of now, the GBPUSD pair is experiencing fluctuations influenced by both technical factors and macroeconomic events. The recent swing high is noted at 1.36326, while the swing low stands at 1.33704. This analysis will delve into the critical levels that traders should monitor to navigate the market effectively.
Technical Analysis
Support and Resistance Levels
Daily Time Frame
Support Levels:
First Support: 1.36000 Second Support: 1.35000 Third Support: 1.34000
Resistance Levels:
First Resistance: 1.37500 Second Resistance: 1.38000 Third Resistance: 1.38500
4-Hour Time Frame
Support Levels:
First Support: 1.37100 Second Support: 1.36800 Third Support: 1.36500
Resistance Levels:
First Resistance: 1.37400 Second Resistance: 1.37700 Third Resistance: 1.38000
Fibonacci Retracement Levels
Using the swing high of 1.36326 and swing low of 1.33704, the Fibonacci retracement levels are calculated as follows:
These levels serve as potential reversal points and can guide traders in identifying entry and exit strategies.
Exponential Moving Averages (EMA)
Daily Time Frame
EMA 50: 1.36500 EMA 100: 1.36200 EMA 200: 1.35800 EMA 400: 1.35400
4-Hour Time Frame
EMA 50: 1.37200 EMA 100: 1.37000 EMA 200: 1.36600 EMA 400: 1.36200
The EMAs indicate the overall trend direction. Currently, the price is above the shorter-term EMAs on both time frames, suggesting a bullish sentiment in the market.
RSI Divergence
The Relative Strength Index (RSI) is currently positioned at 65, indicating that the GBPUSD pair is in the bullish territory. However, there is a noticeable divergence where the price has been making higher highs while the RSI has been showing lower highs. This divergence could signal a potential reversal or a weakening of the bullish momentum, warranting caution for traders.
Order Blocks
Order blocks are significant areas where institutional buying or selling has taken place. Key order blocks identified in the current market structure are:
Bullish Order Block: 1.36000 to 1.36200 Bearish Order Block: 1.37500 to 1.37700
These order blocks can serve as critical zones for potential price reactions.
MACD Analysis
The Moving Average Convergence Divergence (MACD) indicator is currently showing a bullish crossover, with the MACD line above the signal line. This suggests that the upward momentum may continue in the short term. However, traders should remain vigilant for any signs of divergence that could indicate a reversal.