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Is GBPUSD heading to 61.8% Fibo level?

Friday, May 8, 2020 6:00 PM GMT

The Cable is exploding to the upside after employment rate release and the selling pressure has been increased on the greenback. The rate reached an all-time high of 14.7% though analysts were expecting a worse number. This could be an indication that we may have seen the peak of coronavirus pandemic damage on the economy. 

Starting from the weekly chart, it’s obvious there is a hard battle among buyers and sellers. The current week formes a Doji candlestick which indicates still uncertainty while price still holds above the 50% Fibonacci level. Additionally, Traders must closely monitor the 20EMA which has been already tested twice from below it.

Weekly


Heading to the daily chart, the pair is forming a kind of triangle. It tested the lower side multiple times and looks like heading to the 61.8% Fibonacci level. This level is major resistance. The pair is currently moving above the 20EMA and tested the 50SMA.

Daily

Finally, reviewing the hourly chart, the price clearly performs a bullish move. Major resistance is 61.8% Fibonacci level while the RSI (14) is rising to the overbought level. The blue area acts as a support for the buyers.  

Hourly

Checking the ZuluTrade’s Traders Sentiment, the community is buying GBPUSD.

Disclaimer

The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.

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