Home Technical Analysis Technical Analysis – GBPSEK erases bearish rally; could post further gains in short term

Technical Analysis – GBPSEK erases bearish rally; could post further gains in short term

5 min read

Technical Analysis – GBPSEK erases bearish rally; could post further gains in short term

Melina Deltas, XM Investment Research Desk

GBPSEK has recorded a stunning bullish rally over the previous two trading days and is set to complete another positive session. After the rebound on the seven-month low of 11.6200, the price challenged an intraday high near the 11.8060 resistance level. The technical indicators in the short-term are confirming the upside momentum on price action.

The RSI is currently increasing positive momentum towards its neutral threshold of 50, while the %K line of stochastic oscillator posted a bullish cross with the %D line in the oversold area, suggesting further gains. However, the price is being capped by the 20- and 40-simple moving averages (SMAs) acting as significant resistance levels.

Should the pair extend gains, resistance should be met by the 20-day SMA near 11.8786. A significant leg above this key level could send prices towards the 12.1495 resistance high, identified on May 2.

On the flip side, if the pair bounces down, immediate support could be met at the 11.6200 support. Steeper decreases, though, could drive prices south towards the 11.4870, breaking the longer-timeframe ascending trend line.

In the bigger picture, the price is bullish as long as it has been holding above the uptrend line, since August 2017.

Legal Disclaimer:
The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

Let’s block ads! (Why?)

Source link

Load More Related Articles
Load More By admin
Load More In Technical Analysis

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Atmospheric Gases, Hydrogen, Acetylene and Helium Gas Equipment – Global Market Overview & Outlook (2018-2025 …

DUBLIN–(BUSINESS WIRE)–The “Atmospheric Gases, Hydrogen, Acetylene and H…