In October 1st analysis I wrote: “if bulls breaks above the new resistance on 1.5160 that will lead to first target on 1.5330 and the second target near 1.5450”. So it happened and the first target was achieved yesterday (price stopped below it).
Today we saw a failed attempt to break above 1.5330. Price moves down and level that has a chance to stop the downward move can be found at 1.5220. This is the lower limit of the upward channel inside which price moves since last week. If that level breaks below, next targets of falls will be located at: 1.5170, 1.5100. Rebound from the = 1.5220 should bring price back to 1.5330 and next to 1.5450.
Wider view, time-frame W1
GBPUSD moves in a downtrend and currently upward movement took form of a flag. Break below lower limit of the flag should start new wave of downtrend. However in nearest future the next upward move inside the flag can’t be excluded.
