This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.
Overview :
- Yesterday, the GBP/USD pair dropped sharply from the level of 1.3672 towards 1.3603. Now, the price is set at 1.3587. On the H1 chart, the resistance of the GBP/USD pair is seen at the level of 1.3672 and 1.3515. It should be noted that volatility is very high for that the GBP/USD pair is still moving between 1.3627 and 1.3515 in coming hours. Moreover, the price spot of 1.3627/1.3672 remains a significant resistance zone. Therefore, there is a possibility that the GBP/USD pair will move downside and the structure of a fall does not look corrective. This is confirmed by the RSI indicator signaling that we are still in the bearish trending market at the same time frame. Now, the pair is likely to begin an descending movement to try breaking the price of 1.3587. Additionally, if the GBP/USD pair is able to break out the bottom at 1.3587, the market will decline further to 1.3550 in order to test the weekly support 2. At the same time, if a breakout happens at the resistance levels of 1.3672 and 1.3720, then this scenario may be invalidated. But in overall, we still prefer the bearish scenario in coming two days.
Forecast :
- The price spot of 1.3672 and 1.3627 remains a significant resistance zone. Therefore, there is a possibility that the GBP/USD pair will move to the downside and the fall structure does not look corrective. Resistance is seen at the level of 1.3627 today. So, sell below 1.3627 with the first target at 1.3587 to test yesterday's bottom. In overall, we still prefer the bearish scenario as long as the price is below the level of 1.3627. If the GBP/USD pair is able to break out the bottom at 1.3587, the market will decline further to 1.3550, then continue towards the next objective of 1.3515. However, it would also be sage to consider where to place a stop loss; this should be set above the second resistance of 1.3720.
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.