Gbpusd october 8th 2018 analysis
Last week the British Pound ended its trading in a positive range. On the GBPUSD weekly chart, there is a bullish penny closed above the resistance of 1.3047 (current support). The GBPUSD seems to be pointing towards the 1.3472-1.3395 supply range. On the daily GBPUSD chart, the pattern AB = CD is completed at 1.227. This rate correlates with the support line drawn from the bottom of 1.2661 and showed a good reaction last week. Despite such a strong uptrend, traders may well have to pay attention to the 1.3217-1.3138 supply range. This supply area can be the last supply area before the weekly chart reaches the range 1,3472-1. 3295. That’s why you have to pay attention to this area this week.
On Friday, the pound was able to grow against the US dollar in response to US employment reports and positive news from BREXIT. The reopening rate of October was breached in the 1:30 bp and GBPUSD was able to challenge $ 1.31 and reach the August rebound of 1.3117. Regarding the long-term charts, the GBPUSD is likely to hit the highs in August this week and will move to the redshift range at 1.3218-1.393.
Price action strategy
Although the red-colored range is at 1.3218-1.3993 just before the supply range of 1.3472-1.3295, it is expected that the range of 1.3218-1.3193 could lead to a downside GBPUSD. This range includes the 78.6% Fibonacci resistance at 1.3218, the four-hour key resistance at 1.3215, the Rand rate of 1.32 and the four-hour key resistance at 1.3193, and at the bottom of the daily supply range at 1.3217-1. 3138.
Closing a 4-Kundel curtain on the downtrend of the red-ring may be a strong signal for GBPUSD, in which case the trading profit margin of GBPUSD will rebound from August to 31,177.