ZuluTrade Blog

Is GBPUSD heading to 61.8% Fibo level?

Market View | Friday, May 8, 2020 6:00 PM GMT

The Cable is exploding to the upside after employment rate release and the selling pressure has been increased on the greenback. The rate reached an all-time high of 14.7% though analysts were expecting a worse number. This could be an indication that we may have seen the peak of coronavirus pandemic damage on the economy. 

Starting from the weekly chart, it’s obvious there is a hard battle among buyers and sellers. The current week formes a Doji candlestick which indicates still uncertainty while price still holds above the 50% Fibonacci level. Additionally, Traders must closely monitor the 20EMA which has been already tested twice from below it.


Heading to the daily chart, the pair is forming a kind of triangle. It tested the lower side multiple times and looks like heading to the 61.8% Fibonacci level. This level is major resistance. The pair is currently moving above the 20EMA and tested the 50SMA.


Finally, reviewing the hourly chart, the price clearly performs a bullish move. Major resistance is 61.8% Fibonacci level while the RSI (14) is rising to the overbought level. The blue area acts as a support for the buyers.  


Checking the ZuluTrade’s Traders Sentiment, the community is buying GBPUSD.


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