Overview:
On July 15, extensive bearish impulse was initiated. Since then, the GBP/USD pair has been downtrending below the depicted downtrend line.
Many bearish impulses were previously initiated around 1.7180 and 1.6630 where the downtrend line came to meet the pair then.
The price level of 1.6140 constituted a weekly support level that paused the bearish movement on September 9 when the bears quickly visited price level of 1.6060.
Retracement towards the price zone of 1.6350-1.6400 took place as expected where a new bearish impulse was applied as anticipated.
This week, the same scenario is taking place. The bulls are pushing towards the downtrend line as well as previous prominent bottom on the weekly chart (price zone of 1.6225-1.6250).
The market offered a valid SELL opportunity around 1.6460 during last week's consolidations. Bearish targets were located around 1.6160, 1.6080 then 1.5890 ( ALL target levels already got visited ).
Trading recommendations:
Based on the previous data, SELL positions are preferred as long as the bears keep defending price zone of 1.6250-1.6320 ( 23.6% Fibonacci level and previous broken bottom ).
The stop loss to be placed above 1.6320. Price levels of 1.6080 and 1.5890 are initial targets.
The material has been provided by InstaForex Company - www.instaforex.com
