GBP/USD formed a double bottom reversal pattern after testing the area of 1.52 for the second time on June 5. The pair has also broken above the 200D moving average that could be a signal of a potential range trading, where the rate would move around the MA.
Amid these conditions, it seems the best to use overbought/oversold oscillator readings in order to capitalize during consolidation. Currently, stochastic oscillator is in the oversold zone, which could be a good entry point to go long.
Therefore, consider buying GBP/USD around the current level (1.5290) targeting 50% Fibonacci retracement level (1.5430 area) applied to 1.5698 (a high back on May 21) and 1.5169 (a low back on June 1). Only a daily close below the minor support S1 (1.5264) could push the price further down to form a triple bottom, but I'd expect the rate to grown in the near future.
Support: 1.5264, 1.5169
Resistance: 1.5294, 1.5371, 1.5433
The material has been provided by InstaForex Company – www.instaforex.com