Wednesday, March 16, 2016

GBP/USD Reached Target 1.41

The question is, what follows next?

Considering the way it dropped from 1.4430 to 1.4100 without making any significant retracement and considering the way the weekly and the monthly time-frames look like, the most probable scenario is that it will either form a new historical low, or at the very least it will continue dropping and test the support at 1.3835.

We shouldn’t forget that the pair has reached the support coinciding with the middle line of Bollinger bands, which usually attracts the price like a magnet, especially when it comes to longer time-frames like the daily one.

In my opinion it will break below the support, but how long it will take to do that remains to be seen.