GBPUSD – Potential Counter-Trend Breakout | Jan 28
GBPUSD – Potential Counter-Trend Breakout @ Key ST Resistance Level (1hr chart)
One of the more relentless downtrends lately has been the GBPUSD dropping almost 1000 pips in the last 30 days. However last week the Cable bounced and cleared above the 20 ema and dynamic resistance on the 4hr chart for the first time in almost a month.
Since then the pair has been attempting to build a series of higher lows and higher highs.
Today the pair cleared a key ST resistance around 1.4360 for the first time and is currently printing just around this level, thus forming a counter-trend breakout.
Counter-trend breakouts tend not to last as long as with-trend, so am not sure how long it will run, but if it holds, it should put pressure on 1.4460 first.
Meanwhile a break and close back below this level will put pressure on 1.4250 and potentially the yearly lows just above the ‘big figure‘ at 1.4000.
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