- Due to the previous events, the price of GBP/USD pair is still trading between the levels of 1.5466 and 1.5606. So, it is better to be careful at this range area around the level of 1.5466 (61.8% of Fibonacci retracement levels). Therefore, first step is to wait for a period of tight sideways range market before deciding to deal. Then, the market is probably going to start showing the signs of bullish market again at the same price of 1.5466. In other words, it will be a good sign to buy above the support that sets at the price of 1.5466 with a first target of 1.5551 and it will climb towards the first resistance at 1.5606. However, if the the pair could not break this resistance, the market will probably indicate a bearish opportunity below 1.5606 (it should be noted that the 78.6% of Fibonacci retracement levels is 1.5606 on the H4 chart), then the level is going to act as strong resistance. So it will be a good sign to sell in the short term below the level of 1.5606 with the first target of 1.5495 and it is going to call for downtrend in order to continue a bearish market towards 1.5460.
- A strong support will be set at the level of 1.5466.
- The resistance has been already placed at the point of 1.5606.
- We expect a new range of 273 pips at least this week.
- Please, check out the market volatility before investing because the price may have already been reached and scenarios become invalidated.
The material has been provided by InstaForex Company – www.instaforex.com