Overview:
On July 15, an extensive bearish impulse was initiated. Since then, the GBP/USD pair has been moving downwards 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 zone of 1.6140 - 1.6100 constituted a weekly support that paused the bearish movement on September 9 although the bears quickly touched 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.
The bulls were pushing towards the downtrend line as well as previous prominent bottom on the weekly chart (price zone of 1.6225-1.6250).
Trading recommendations:
Based on the previous data, SELL positions are preferred as long as the bears keep defending the price zone of 1.6250-1.6320 ( 23.6% Fibonacci level and previous broken bottom ).
Yesterday as suggested, a slide below price zone of 1.6045-1.6020 indicated another SELL opportunity with higher risk. It's running in +ve pips now.
The stop loss should be placed above 1.6100. Price levels of 1.6080 and 1.5890 were initial targets ( both got visited ).
The newly-broken daily low at 1.5950 should be now defended by the bears in order to initiate another bearish swing towards lower targets.
The material has been provided by InstaForex Company - www.instaforex.com
