Interesting price action seen on cable right now

GBP/USD:

Monthly timeframe:

(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)

Although March clocked levels not seen since the 1980s, ahead of a 127.2% Fib ext. level at 1.1297, price staged an impressive recovery and regained approximately 80% of the month’s losses.

Support at 1.1904/1.2235 remains in play as we close out the month of April. Neighbouring resistance can be seen in the form of a trendline (1.7191).

Concerning the primary trend, lower peaks and troughs have decorated the monthly chart since early 2008.

Daily timeframe:

Partially altered from previous analysis -

Sterling retained a strong underlying bid yesterday, led by a waning buck. Momentum, however, could diminish into the week’s close as the pair marched towards a demand-turned supply at 1.2649/1.2799, an area that aligns closely with a 200-day simple moving average (SMA) at 1.2645.

Also technically appealing is the possibility of forming an ABCD bearish pattern (orange) that completes around 1.2729.

H4 timeframe:

Supply at 1.2622/1.2517 had its limits tested once again on Thursday, leading to another breach to highs at 1.2642. We don’t really see much in the way of supply above the current zone; the next point of interest is made up of Fib studies, comprised of a 127.2% Fib ext. level at 1.2801 and a 78.6% Fib level at 1.2809.

H1 timeframe:

Despite a nudge to 1.2642 that missed supply at 1.2691/1.2648 by a hair, we are establishing a position beneath 1.26 on the H1 timeframe. This could see the candles address the recently broken supply zone at 1.2526/1.2511, perhaps whipsawing to 1.25. In addition to this, the RSI indicator is seen exiting overbought territory from peaks at 80.00.

Structures of Interest:

As traders digest the ravenous advance through 1.26 and sellers currently defending the said level as resistance, as well as daily price coming within a few pips of testing demand-turned supply on the daily timeframe at 1.2649/1.2799, there’s a chance we could journey to H1 supply-turned demand at 1.2526/1.2511 today.

On the other hand, retaking 1.26 to the upside and bringing in H1 supply at 1.2691/1.2648, along with the lower edge of the daily zone at 1.2649/1.2799 and possibly completing the daily ABCD correction, could also see strong selling unfold.
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