The expected move to the upside of the GBP/USD>>> did happen, but the pair could not break above 1.2432. Said move to the upside was a test of the breakout of the support trendline (in red), which formed during the GBP consolidation between 7th October 2016 and 20th December 2016.
Immediately after that the pair continued falling, and at the moment it is close to its lowest lows from 7th October 2016 (1.20129), 11th October 2016 (1.20883) and 25th October 2016 (1.20819).
In case the move to the downside continues and the pair breaks below the support zone you can see on the screenshot, GBP/USD could reach a new historical low, there is even a possibility to fall below 1.2000 or even below 1.1900.
On the other hand, if the support zone proves strong enough and the pair rebounds from it we could expect a new move to the upside towards 1.2300.
It may find some support there and bounce back up.
ReplyDeleteIt's consolidating sideways for now.
ReplyDeleteExcellent analysis!
ReplyDeleteGood post, very informative.
ReplyDeleteGood post!
ReplyDeleteGood reporting, excellent.
ReplyDelete