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GBPUSD tests May low at 1.21543


GBPUSD tests May 2022 low

The GBPUSD

GBP/USD

The GBP/USD is the currency pair comprising the currency of the United Kingdom, the British pound sterling (symbol £, code GBP) and the dollar of the United States of America (symbol $, code USD). The pair rate indicates how many US dollars are needed to buy one British pound. For example, when GBP/USD is trading at 1.5000, it means that 1 pound equals 1.5 dollars. GBP/USD is the fourth most traded currency pair in the forex market, giving it abundant liquidity and a low spread. While currency pair spreads vary from broker to broker, generally speaking GBP/USD often stays within the 1 pip to 3 pip spread range, making it a good candidate for scalping. . GBP/USD, also known as the “cable” (due to the transatlantic cables used to telegraph its exchange rate in the 19th century) has a positive correlation with EUR/USD and a negative correlation with EUR/USD. ‘USD/CHF. Trading GBP/USD While many traders and even brokers will argue that the best time to trade GBP/USD is during its busiest hours in London and New York, this can be a double edged sword due to the unpredictability of the couple. Its volatility also fluctuates often, and so what might be a profitable strategy one month, may not be as productive the following months. Additionally, purely technical traders can really struggle to be consistent with this pair (i.e. ignoring the fundamentals), due to the unique political nature of the UK. The recent drama surrounding Brexit has added another layer of uncertainty to this currency pair. With a soft resolution not expected in the foreseeable future, it is clear that GBP/USD will be influenced by any development and trading with the European Union.

The GBP/USD is the currency pair comprising the currency of the United Kingdom, the British pound sterling (symbol £, code GBP) and the dollar of the United States of America (symbol $, code USD). The pair rate indicates how many US dollars are needed to buy one British pound. For example, when GBP/USD is trading at 1.5000, it means that 1 pound equals 1.5 dollars. GBP/USD is the fourth most traded currency pair in the forex market, giving it abundant liquidity and a low spread. While currency pair spreads vary from broker to broker, generally speaking GBP/USD often stays within the 1 pip to 3 pip spread range, making it a good candidate for scalping. . GBP/USD, also known as the “cable” (due to the transatlantic cables used to telegraph its exchange rate in the 19th century) has a positive correlation with EUR/USD and a negative correlation with EUR/USD. ‘USD/CHF. Trading GBP/USD While many traders and even brokers will argue that the best time to trade GBP/USD is during its busiest hours in London and New York, this can be a double edged sword due to the unpredictability of the couple. Its volatility also fluctuates often, and so what might be a profitable strategy one month, may not be as productive the following months. Additionally, purely technical traders can really struggle to be consistent with this pair (i.e. ignoring the fundamentals), due to the unique political nature of the UK. The recent drama surrounding Brexit has added another layer of uncertainty to this currency pair. With a soft resolution not expected in the foreseeable future, it is clear that GBP/USD will be influenced by any development and trading with the European Union.
Read this term is down for the 4th day in a row, and in the process the pair moved to test the May 13 swing low (and low of the year) at 1.21543.

Today’s low has reached 1.2160 so far.

The May 13, 2022 low price was the lowest level since May 18, 2020, when the price hit a low of 1.20705.

A move below 1.21543 would open the door for a move towards this May 2020 low.

Key level for GBPUSD on the daily chart.

Drilling on the hourly chart, price action today initially found Asian session support near 1.2260. This level was the swing low dating back to May 9th. The subsequent rebound saw price re-enter a swing zone between 1.2288 and 1.2302. High price on a corrective move stalled just at the natural level of 1.2300 resistance level

Resistance level

A trade resistance or resistance level reflects a given price that acts as a temporary cap for an asset. In its most basic form, this level puts pressure on the price of an asset not to exceed it, either by acting as an outright barrier or by exerting pressure. This pressure is due to an increasing number of sellers wanting to sell at the given price at a defined price resistance level. Resistance levels can be either temporary builds, longer lasting builds, or purely psychological. Therefore, several factors can control resistance levels or cause them to change over time. In terms of technical analysis, a simple resistance level can be calculated by drawing a line along the highest highs for the time frame. Resistance notably differs from support levels, which work in the opposite direction. Understanding the Basics of Resistance Levels Resistance levels should not just be flat lines, but can also represent sloping price levels against trend lines. There are both simplistic and advanced ways to calculate resistance levels and this forms the basis of technical analysis. Any asset trader can set their strategies or place stop-loss orders based on resistance levels. A resistance level is the price at which enough traders intend to sell the particular asset, thus exceeding the number of buyers in terms of volume. As soon as the price reaches this potential resistance, the number of sellers increases, preventing the price from rising further. Resistance is present on all timeframes, generally speaking, the longer the timeframe, the more these levels manage to hold.

A trade resistance or resistance level reflects a given price that acts as a temporary cap for an asset. In its most basic form, this level puts pressure on the price of an asset not to exceed it, either by acting as an outright barrier or by exerting pressure. This pressure is due to an increasing number of sellers wanting to sell at the given price at a defined price resistance level. Resistance levels can be either temporary builds, longer lasting builds, or purely psychological. Therefore, several factors can control resistance levels or cause them to change over time. In terms of technical analysis, a simple resistance level can be calculated by drawing a line along the highest highs for the time frame. Resistance notably differs from support levels, which work in the opposite direction. Understanding the Basics of Resistance Levels Resistance levels should not just be flat lines, but can also represent sloping price levels against trend lines. There are both simplistic and advanced ways to calculate resistance levels and this forms the basis of technical analysis. Any asset trader can set their strategies or place stop-loss orders based on resistance levels. A resistance level is the price at which enough traders intend to sell the particular asset, thus exceeding the number of buyers in terms of volume. As soon as the price reaches this potential resistance, the number of sellers increases, preventing the price from rising further. Resistance is present on all timeframes, generally speaking, the longer the timeframe, the more these levels manage to hold.
Read this term (the high reached 1.22998) and just below the swing zone high (see the red circles in the chart below). The price tends to fall since this successful test.

And now?

The seller has full control.

If the buyers are to regain more control by crossing above the 38.2% retracement of this last leg down to 1.22137, then the 50% of this last move to 1.22302 would be upside targets to hit. and through and give buyers drop against the little comfort. Without it, and buyers simply do not earn. Sellers are still under firm control.

GBPUSD tests May low at 1.21543

GBPUSD tests 2022 swing lows


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