GBPUSD after taking a bullish reversal from our major support zone on 22nd Sept and managed to hover near 61.8% fibo retracement level 1.3700, we were expecting the pair to go for further gains towards 1.3870; King Dollars strength, which came from Jerome Powells strong sentiments on tapering from 2022, drove Cables weak against it and even the 50% fibo level 1.3536 failed to prevent the pair from moving any lower. The exponential moving averages 50 and 200 in the daily time frame along side the Senkou Span A of the ichimoku cloud - became strong zone of resistance and smashed the cables down, proceeded by a touch down at 1.34000 price action and 38.2% fibo retracement level. 1.3390 became the price where bulls took control on a temporary note to grab onto some gains by driving the pair higher towards 50% fibo retracement level again where we had our Friday closing. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Pound/dollar has fallen out of the long-term range that characterized its trading by losing the 1.3570 level. That "Death Cross" pattern recorded in early September proved decisive for the breakdown. Momentum on the daily chart is sharp to the downside, and the new bounce has sent the Relative Strength Index (RSI) out of oversold territory. immediate support is at 1.3410, the new 2021 trough. The following significant lines to watch date back to late 2020. These include 1.3310 and 1.3250 and 1.3190.

Resistance awaits at 1.3570, which provided support before the collapse. It is followed by 1.3640, 1.3730 and 1.3750.

GBPUSD

Oct 03 2021