GBP/USD Technical Analysis At Year-End: ranging bearish with 1.45 as a target
Some banks are trying to predict the values for EUR/USD and for other pairs at year-end providing their technical analysis using support/resistance and 200 SMA indicator. For example, Barclays estimated the EUR/USD to be 1.04, some other banks evaluated GBP/USD to be round 1.45 for example. But all agreed for GBP/USD to be in bearish market condition for many months from now with fundamental factors which is helping to accelerate the bearish tendency.
So let's make such a simple 'prediction' for GBP/USD using the following simple technical analysis tools:
- support and resistance lines, and
- Simple Moving Averages indicator (which is standard indicator in Metatrader 4 and Metatrader 5)
As
we see from the charts below (W1 timeframe and MN1 timeframe for
EUR/USD) - 1.4565 is the key support level for this pair for both
timeframes. On W1 timeframe - the price is located below 100 SMA and
below 200 SMA for primary bearish market condition with secondary ranging between 1.5929 resistance and 1.5169 support levels with 1.4565 as a next level for this pair. It means that the price should break 1.5169 support first from above to below to go from ranging to the bearish area of the movement, and after that only we can estimate this 1.4565 target as a valid one.
MN1 timeframe: there is almost same situation - the price is on bearish ranging between 1.5929 resistance and 1.4565 support, and 1.4565 support level is the nearest one for this timeframe.
Thus, we can estimate the ranging bearish market condition with 1.4565 target at year-end.
