After forming a bearish divergence and
a breakout of the uptrend trendline, GBP/USD confirmed that it lost upside momentum. This could result in either a strong
correction down or a consolidation.
The Fibonacci levels applied to the
trendline breakout point shows that the final target, which is 0% level
– S3 (1.5299), has not been reached, although the S2 support
(1.5447) has been broken. Currently, the pair is trading just below the R1
(1.5614) resistance that could be a bouncing point to start a wave
Consider selling GBP/USD while it is
trading near R1 with a target at S3 (1.53) area. Only a daily close above
R2 (1.5688) might resume the long-term trend up.
Support: 1.5540, 1.5447, 1.5300, and 1.5168.
Resistance: 1.5614 and 1.5688.
The material has been provided by InstaForex Company – www.instaforex.com