Overview:
- The GBP/USD pair has broken resistance at 1.2665 which acts as a support this morning. The pair is moving between the levels of 1.2665 and 1.2836. As the trend is still above the 100 EMA, a bullish outlook remains the same as long as the 100 EMA is headed to the upside. Consequently, the level of 1.2836 remains a key resistance zone.
Therefore, there is a possibility that the GBP/USD pair will move upwards above 1.2665, which coincides with a ratio 61.8% of Fibonacci retracement.
The falling structure does not look corrective. In order to indicate a bearish opportunity above 1.2665. So, buy above this level with the first target at 1.2836 . Moreover, if the pair succeeds to pass through 1.2836, it will move upwards continuing the bullish trend development to 1.2936 in order to test the weekly resistance 2. However, if a breakout happens at 1.2544, this scenario may be invalidated. Also, you have to note that it is likely to trade in a higher range as long as it remains above the level of 1.2544. Hence, the major support was already set at the level of 1.2544.
The material has been provided by InstaForex Company – www.instaforex.com
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