Tuesday, August 14, 2018

GBP/USD May Consolidate Before It Continues Dropping To The Next Support


The support at 1.2720 stopped the depreciation of the pair, if only temporary. After the pair rebounded to 1.2870, which is practically the first resistance level to the upside, today the GBP returned toward the support at 1.2720.


It is more than clear that the move north was corrective, but I suppose that the pair will consolidate between the abovementioned levels for a little while longer. There may be a test of the resistance levels at 1.2850 and 1.2920, which is made clear on the H4 time frame.

On the larger time frames, however, the pair remains very bearish, and the next support zone toward which the pair should head for after the end of the correction is around 1.2600 – 1.2570.

The alternative scenario is for a continuation of the depreciatin without a deeper correction.


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