GBP/USD: key technical levels for today

GBP / USD

Daily chart

The price attempted to break above 23.6% Fibonacci resistance at 1.306 on 11.09.2018 and 12.09.2018. Both failed. The price is below the 100- and 200-day MA, but over the 50-day MA.

Main resistance: 1,306; a break out above 1.306 is a strong trend-reversing signal for GBP/USD.

Main support: 1,298; upper diagonal trend-line and 50-day MA.

The scenarios for the day depend on these two levels and on today's central bank meetings.

Bullish scenario:

If the price breaks out above 1,307 (probably after an increase in BoE interest rates or a positive outlook from the central bank on the economy) we expect these resistance and support levels:

Resistance 1: 1.319; a previous peak of the bearish trend and a 100-day MA.

Resistance 2: 1,331; 38.2% Fibonacci resistance and a previous peak.

Support: 1.3063; 23.6% Fibonacci (pierced resistance) and decisive breakthrough over the drilled downhill channel.

Bearish scenario: 

DeMarker oscillator has a slight divergence that points to a weakening trend and supports the bearish scenario with a return  the downwards channel (yellow). At a third failed break out attempt at 1,307 and a cautious BoE view, we expect the following key GBP/USD levels:

Support 1: 1,298; support from the upper diagonal downwards channel trendline and 50-day MA.

Support 2: 1, 284; median line to the downward channel

Support 3: 1,273; lower diagonal trendline.

Main Resistance: 1.3063

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