Type:
Bearish Momentum
Key Levels:
Resistance: 1.1953
Pivot: 1.1895
Support: 1.1783
Preferred Case:
On the H1, with price moving below the ichimoku cloud and along the descending trendline, we have a bearish bias that price will rise and drop from the pivot at 1.1895 in line with the pullback resistance to the 1st support at 1.1783 where the 161.8% fibonacci extension and 100% fibonacci projection are.
Alternative Scenario:
Alternatively, price may break pivot structure and rise to the 1st resistance at 1.1953 where the pullback resistance is.
Fundamentals:
With no major news events ahead, and the dovish sentiment across the UK and the Eurozone, further downside can be expected, which gives us a bearish bias on the British Pound.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.