- Pair : GBP/USD.
- Pivot : 1.4083.
- Trend (H1) : Bearish.
- Apparently, the market is bouncing perfectly from the region of 1.4240 - 1.4083.
- There is still massive doom about The GBP/USD pair and the only reason we are seeing a correction from the top price of 1.4240 to close at the 1.3926 price.
- Price has bounced perfectly off our seller area and we look to sell on dips below the levels of 1.3986 (38.2 Fibonacci retracement, first resistance) for a further push down to at least 1.3900 before 1.3829 supports.
- The GBP/USD pair broke support which turned to strong resistance at the level of 1.3986 yesterday. Also, it should be noted that the weekly pivot point will act as major resistance (1.4083) today.
- The level of 1.3986 is expected to act as major resistance today. From this point, we expect the GBP/USD pair to continue moving in a beairhs trend from the resistance levels of 1.4257 and 1.4228.
- Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in the bullish trending market.
- Consequently, the first resistance is set at the level of 1.3986 (horizontal green line). So, the market is likely to show signs of a bullish trend around the spot of 1.3986.
- If the GBP/USD pair fails to break through the resistance level of 1.3986, the market will decline further to 1.3900. The pair is expected to drop lower towards at least 1.3776 with a view to test the last bearish wave.
- In other words, sell orders are recommended below the spot of 1.3986 with the first target at the level of 1.3900; and continue towards 1.3829 (the weekly support 1). Next ojective 1.3776.
- This would suggest a bearish market because the moving average (100) is still in a positive area and does not show any trend-reversal signs at the moment.
- We look to move our stop loss to resistance at 1.4150 (78% Fibonacci, horizontal swing high resisitance) to protect our gains.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Mourad El Keddani,
InstaForex Group © 2007-2021
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