GBP/USD Faces More Drops in Short Term

 

After the gains of the dollar on Wednesday and Thursday,
GBPUSD decline can shift into lower gear.

According to downtrend of this week, sell GBP at 1.6520 with 40/50 pips as next target.

Today, there is no revelant US report. So, the market will be thin.

It will be interesting to see some correction for the pound before to consider to sell it again.
Later today, the calendar in the UK is rather thin with only the monthly budget
data on the calendar.
After the close of the markets, BoE’s Dale will speak on monetary policy.

If GBPUSD break the resistance 1.6520, the price can follow a new upside to 1.6570 resistance level.
You can expect more drops if the price breaks the level 1.6500.


Outlook: Sideways

Trend : slightly bearish

Breakout: Downside

OB/OS : Oversold

 

R1 – 1.6538
R2 – 1.6579
R3 – 1.6621

S1 – 1.6447
S2 – 1.6406
S3 – 1.6365

If you're intraday trader , new bidders can show interest at 1.6460 support zone.

 

Read the following ilustration about the overall FX short term.

The picture is provided by Saxo Bank.

We know that Friday is a calm day to trade without excessive information.

Let's wait for Monday.

New corrections are required before to short it.

 

 

Good luck!

igor.titara@hotmail.com'
Igor Titara

Igor Titara is a Forex trader and a market analyst. He's in the industry for 2.5 years. Forex remains his major interest and profession. He holds a Degree in Mathematics&Statistics by Federal University of Ceará or UFC. His work includes fundamental and technical reports on various currency pairs, gold/silver. His technical analysis features bullish and bearish patterns, supply and demand zones, volume, breakouts and Fibonacci levels.

with No Comments 4917

Share: