Since it met the 1.2-1.21 support zone GBPUSD had more than a 600 pips rally.
That brought the price back to the bottom of the a broken Wedge pattern (red dashed line) that has already acted as support once (December 2016).
With the completion of a bearish Cypher pattern near 1.26 and the bottom of the broken Wedge I see potential for a short term pullback in $GBPUSD.
Potential Targets - 1.24-1.45, 1.23
If GBPUSD will continue higher it will probably head towards the top of the Wedge and the bottom of a weekly channel - near 1.3 (also psychological level)
For bearish trades perhaps it is better to wait for a close below 1.26
That brought the price back to the bottom of the a broken Wedge pattern (red dashed line) that has already acted as support once (December 2016).
With the completion of a bearish Cypher pattern near 1.26 and the bottom of the broken Wedge I see potential for a short term pullback in $GBPUSD.
Potential Targets - 1.24-1.45, 1.23
If GBPUSD will continue higher it will probably head towards the top of the Wedge and the bottom of a weekly channel - near 1.3 (also psychological level)
For bearish trades perhaps it is better to wait for a close below 1.26
Commento:
First target reached - 1.26 is being tested as support now
Commento:
We had nice reaction to the first Sell Zone and the Cypher did generate some gains but GBPUSD will probably move even stronger this week as USD and FOMC are now in focus.
Bulls can look for a breakout above first Sell Zone
Bears should continue focusing on 1.26-1.27 as resistance.
Bulls can look for a breakout above first Sell Zone
Bears should continue focusing on 1.26-1.27 as resistance.
