Within two months GBP/USD fell over 1100 pips from the top at 1.7190 to the low around 1.6050, where formed a small base to begin upward movement. We still have to remember about the huge gap from this week market beginning – price is now approaching this level. Certainly, UK surveys are helping here – they showed a slight advantage of Scots independence opponents (after action take by London authorities).
It is unclear how strong may be the pressure from investors closing short positions, but in our opinion, closing the gap at 38.2% retracement of latest fall (1.6282) may be only the first stop. We should not forget about 50% retracement (1.6350) which is exposed to price action.
Theoretically however, price range may reach even 1.6600 (current month opening and 50% retracement of whole downward wave at 1.7180). Price might stay in this area in the nearest future.
The above analysis is one in a series of analyzes prepared by Comparic team in collaboration with XM broker. Other analyzes can be found every day on XM’s site. Open real XM account or try DEMO version for free. Promotion – 30% bonus up to $10,000!
