Overview :
- The GBP/USD pair broke resistances at 1.5363. 1.5284 has turned back to supports this week. Therefore, the pair has already formed strong supports at 1.5280 and 1.5360 on H4 chart, Moreover, after breaking the ratio of 50% Fibonacci retracement levels. So, it starts signalling the bullish market at this level. It should be noted that the price has set above 50% of Fibonacci retracement levels and the price couldn't close below the supports since the 16th of February 2015. Furthermore, the RSI is still positive at the same time frame. Thus, according to previous events, the price has already moved between 1.5305 and 1.5460. It would be wise to exercise caution in this range area of 53-75 pips. In consequence, the first step is to wait for a period of tight sideway range market before breakouts. Then, the market is likely to start showing the signs of the bullish market. In other words, it will be a good idea to buy above the supports of 1.5363 and 1.5284 prices with the first target at 1.5403.The trend will climb towards the first resistance around the spot of 1.5476 which coincides with the 61.8% of Fibonacci.
Observations :
- Range : A long-term mean reversion strategy that looks to go against strong divergence from the pair’s average value. It will typically hold trades for an extended period of time and is one of the slower moving trading strategies.
- Warning : Please check out the market volatility before investing, because the sight price may have already been reached and scenarios might have become invalidated.
The material has been provided by InstaForex Company - www.instaforex.com
