The GBP/USD pair began moving in uptrend on April 13 after testing 1.4566. The price manages to reach new highs without giving any signals on potential reversal downwards.
Currently, the pair is testing 200 moving average and the uptrend trendline at the same time. In addition, the Demarker oscilator is testing the uptrend trendline being in the oversold zone. Clearly, the trend is upward and a rate is near the key support at 1.5555. This means that a great risk/reward opportunity is offered.
Consider buying while the price remains between the current level of 1.5605 and a low of 1.5555. The target area is near (+/- 20pips) 161.8% Fibonacci retracement level from the most recent corrective wave down, which is marked R3 (1.6158) on the chart. Daily close below S1 can be used as a signal for stop loss.
Resistance: 1.5785, 1.5927,
The material has been provided by InstaForex Company – www.instaforex.com