Friday, March 18, 2016

GBP/USD Reached a Strong Resistance

I expected that the pair will stop dropping at the support at 1.4100 and that did happen, even though it fell to 1.4050, but then it easily bounced off that level. And not only did GBP/USD bounc off that level, it did it so hard that it shot up to 1.4490 in two days.

There, however, was another hurdle – the powerful resistance coinciding with the upper band of Bollinger Bands (the blue line) and (EMA)89 (the green line) on the daily time frame, visible on the screenshot.

I think next week the pair will break above this resistance and it will start rising towards the next resistance at 1.4600.

I also think that there will be a more long-term correction.