Overview:
- According to the previous events, the price of the GBP/USD pair will move between the levels of 1.5548 and 1.5382. But in the short term, the range of the GBP/USD pair will be around 85 pips because the pair will trade between 1.5530 and 1.5443. The minor resistance has set at the level of 1.5530 since yesterday. The support has set at 1.6544, therefore the market will indicate a bearish opportunity below 1.5509 (50% of Fibonacci retracement levels). The level of 1.5509 is going to act as the key resistance today. Therefore, it will be a good sign to sell below this level today with the first target of 1.5471 in order to try to break the daily pivot point on the H1 chart. Furthermore, if the trend manages to close below 1.5471, the market will continue with the downtrend below the daily pivot point towards the level of 1.5421 on July 24.
Observations:
- If the trend is upward, the strength of the currency pair will be defined as following: NZD is in uptrend and USD is in downtrend.
- Fibonacci retracement is used to determine accurate psychological levels of support and resistance. The period of time should be taken into account. Fibonacci is in a trading range; it looks like the trend is trapped and going up and down. If you sell or buy in the long term in this period, you will surely lose your profit.
- Stop loss should never exceed your maximum exposure amounts.
- As a rule, the market is highly volatile if the last day had a huge volatility.
