In last week’s analysis, I pointed out that the rebound took the form of flag which suggests that in the near future falls will come back. I wrote: “the next targets of upward move will be 1.5570 and 1.5720” and “weakness of the bulls bring price to level 1.5330”. Indeed upward movement was stopped at 1.5657 and level 1.5330 has paused falls but only for one day. Rebound abolished 78.6% of downward movement in August. In the near future “cable” waits for a new wave of falls.
Currently GBPUSD is approaching an important support level of 1.5160. This level has already stopped the downward movement twice in the last five months. When the price reaches it, we should see the reaction of the bulls. After the strength of this rebound we will be able to determine the direction of further sessions. After its breakout, support at 1.5000 will be tested.
Try FX GROW. ECN & STP execution of order. Spread of 0.00001.
