GBPUSD Technical Analysis and Bullish Bat Pattern
On the Sterling side, we will have a quite London session with no major macroeconomic data release.
Brexit negotiations continue to grind to a stuttering halt, with key drafts from the June EU summit showing little to no resolutions to the current Irish border issue, and the EU’s Bernier is warning people that they need to be prepared for all possible outcomes, including a “hard Brexit” scenario, one where the UK goes ahead with separating from the EU without any kind of trade agreement in place.
Traders’ focus will remain locked on the upcoming Bank of England (BoE) rate decision, due on Thursday at 11:00 GMT, where the BoE is expected to hold off once again on a rate increase.
On the USD side, we will have Home Sales figures which seems to be a fewer effect on the pair. Brexit and Trade Wars are likely to remain as the determining factors .
Cable is trading 1.31600 as of writing.
From the indicators point of view; 1.30600 appears to be the main support for the pair as the MA 100 in the weekly chart. The near-term trendline support is located at the same levels.
On the H4 chart; 1.31540 and 1.31200 are the key support levels. If the pair closes the day below those support levels, the next target will be 1.30600 – 1.30400 zone.
On the H1 chart, we see a Bullish Bat harmonic pattern. Today we will start to buy GBPUSD for midterm purposes. Our stop loss is 1.29000 and targets 1.33000 and 1.34200.
Intraday Trade Idea is to follow the bullish bat formation. Long entry zone 1.31600 – 1.31200 , stop loss 1.30400 targets 1.32800 and 1.33500.