Weekly bias remains neutral. List of indicators applied on the 4 hours time-frame used for analysis includes:
Moving Averages 21 and 55 = Buy
Parabolic S.A.R = Sell
R.S.I = Neutral
MACD = Sell
SSRC(customized stochastic) = Sell
Weekly Central Pivot Point Bias = Bearish
Candlestick formed from previous week = Neutral ( Indecision bullish Doji)
Candlestick formed from previous month = Bullish
GBP/USD’s rebound extended to 1.5551 last week, it did face resistance from 1.5540, 38.2% retracement of 1.6523 to 1.4950 at 1.5551 and retreated since then. Initial bias is neutral this week. At this point, rise from 1.4950 is viewed as a corrective move and break of 1.5315 will indicates that it’s completed. In such case, bias will be turned back to the downside for retesting 1.4950 first. However, sustained break of 1.5540/51 will argue that whole fall from 1.7190 is completed at 1.4950. And rise from there could target 1.5785 resistance next.
In the week ahead, Friday’s U.S. employment report will be closely watched, survey data on U.K. private sector activity and Thursday’s Bank of England rate review will also be in focus.