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.
Until Yesterday, the bulls have been pushing towards the downtrend line (price zone of 1.6225-1.6250) when extensive bearish reaction occurred. This is manifested in yesterday's daily candlestick.
Trading recommendations:
A suggested, a slide below price zone of 1.6045-1.6020 indicated another SELL opportunity with higher risk. It's running in +ve pips as well. Stop loss should be advanced to 1.5990 to secure our profits.
Price level of 1.5890 should be watched for price action. Daily closure is important to determine the next destination of the pair. Bullish correction towards 1.5950 and 1.6000 is more likely to occur.
The material has been provided by InstaForex Company - www.instaforex.com
