07.10.201614:14 Forex Analysis & Reviews: Intraday technical levels and trading recommendations for GBP/USD for October 7, 2016

Long-term review

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The price zone between 1.3845 and 1.3550 (Historical bottoms in January 2009) was considered a significant demand zone to be watched for bullish recovery.

However, by the end of June, a significant bearish breakdown below 1.3550 was expressed as seen on the depicted charts (Fundamental Reasons).

Bearish persistence below the demand level at 1.3550 enhanced the bearish scenario towards the current price levels around 1.2700 (nearest bearish projection target).

Note that the GBP/USD pair will remain trapped inside the depicted consolidation range between 1.2700 and 1.3550 until breakout occurs in either direction.

Daily persistence below 1.2700 confirms a bearish Flag pattern. Bearish projection target will be located around 1.2020 if enough bearish pressure is maintained below 1.2700.

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