On July 3, GBP/USD broke below the uptrend trendline
providing support and resistance level with the help of Fibonacci applied to
the trendline breakout point.
While the R2 resistance has been rejected on July, 29, GBP/USD
formed a double top at the supply area between R1 (1.5613) and R2 (1.5687). At
the same time pair formed a bearish divergence on the longer and shorter
timescale signaling the potential reversal to the downside.
At this point, all the facts are in favor of another
corrective wave down and it seems reasonable to consider shorting GBP/USD on
pullbacks, particularly near R1 targeting untested 0% Fibs support at the 1.53
area. Only a daily close above R2 (1.5688) would invalidate these analysis and
could send the pair higher to retest the 1.5930 high.
Support: 1.5540, 1.5448, 1.5298, 1.5168
Resistance: 1.5613, 1.5688
The material has been provided by InstaForex Company – www.instaforex.com