The daily pivot point: 1.4770
Overview :
- The GBP/USD pair is showing a sharp fall suggesting the decline from the level of 1.4846 a week ago. It should be noted that the level of 1.4846 represents the weekly pivot point (the daily pivot point was set at 1.4770) and the price has still been trapped between 1.4840 and 1.4700. Moreover, the price has been set below strong resistance at the level of 1.4850 since the first day of the week because the market opened below the weekly pivot point. Additionally, the level of 1.4846 is confirming for a bullish market as the pair has already formed a strong resistance at 1.4846 in the H1 chart. Today, the GBP/USD pair is approaching from it in order to test it. Therefore, downside momentum is rather convincing and the structure of the fall does not look corrective. In order to indicate a bearish opportunity below 1.4846 for that it is likely to be a good sign to sell below 1.4846 with the first target at 1.4699 (double bottom). It is going to call for downtrend in order to continue bearish movement towards 1.4662 to form a new double bottom this week. However, the price at 1.4662 is likely to form a double bottom and call for a strong support. So it will be saturation around 1.4662 to rebound the pair in the short term. There is an oppottunity that the market is going to start showing signs of bullish market. In other words, it will be a good sign to buy above 1.4662 with the first target at 1.4711 and continue towards 1.4760.
The material has been provided by InstaForex Company - www.instaforex.com
