Forex Intraday: GBP/USD flirts with 50 periodic moving averages

GBP/USD

Time frame: H4

Technical analysis: The chart shows that the price is moving in a strong downward trending channel. On 09.07.19 she touched channel support from where she shot sharply to 23.6 % Fibonacci. Made a small correction, then the pair continued the upward direction to a 38.2% Fibonacci test. At this point most investors decided to close their positions, which again led to a drop to 23.6%. The price is currently between these two strong levels, and if it breaks back 23.6%, we will see a decline to channel support. If the price can break 38.2% and keep it above, then we will see an increase to the next significant level of resistance of 50% Fibonacci and downward diagonal resistance. Breaking up these resistances, the GBP/USD will continue to rise to 61.8% and 200 EMAs (the yellow average).

Indicators: At this stage, all moving averages play a role of resistance.

DeM has entered overbought territory, which supports the possibility of a decline to channel support.

RSI is still under its overbought value, which allows the price to continue upward movement.

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