GBP/USD
Time frame: H4
Technical analysis: The chart shows that the price has been able to hold the support of the expanding trend channel and has managed to break the first resistance at 23.6% on Fibonacci. Currently, it is close to the next proven resistance level at 38.2%, where there are many trend lines that play a role of resistance.
Today at 14:00 (GMT +3), the Bank of England will have a meeting on its monetary policy and interest rates. Expectations are that there will be no changes to their policy. This could put pressure on the GBP, which would lead to new sales.
Indicators:
RSI and DeM are in over bought territory that supports sales opportunities from current values.
At this point, the price is over 50 and 100 EMA, SMA that play a role of price support. At the same time, 200 periodic EMAs, SMAs play a strong role of resistance.
Alternative Scenario: If the price can break through all possible resistances and keep above 38.2% on Fibonacci, then it will continue in ascending direction to the next level of 50% Fibonacci.
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