GBP/USD Is Testing the Historical Low, We Can Expect a Correction

GBP/USD continued its bearish trend today and it almost reached the historical low at 1.27910, pausing at 33 pips above that level.

That is obviously a strong support zone and my expectation is that the pair will move correctively to the upside, at least until the announcement of the US Non-farm Payrolls on Friday, which usually cause a lot of volatility or become a catalyst for strong movements in either direction.

Only for the past three months - from 1st July 2016 to 1st October 2016 the pair has dropped with over 6200 pips, from 1.34450 to 1.28170 today.

All this is a reason to think that the pair will move to the upside and eventually close the 50 pips gap that formed in the beginning of the trading week.