Overview :
- Pivot point : 1.3659.
- Pair : GBP/USD.
The British pound has gone forth during the course of the last week, showing signs of bullish market above the area of 1.3605 - 1.3632.
The level of 1.3605 respresents a major support in coming three days. It looks as if the 1.3632 level will continue to be very difficult to beat, and thereby we guess a little bit of uptrend action would make quite a bit of sense in this general nearness.
Further close above the high end may cause a rally towards 1.3605. Nonetheless, the weekly resistance level and zone should be considered.
Today, the GBP/USD pair will continue to rise from the level of 1.3605. The support is found at the level of 1.3605, which represents the 38.2% Fibonacci retracement level in the H1 time frame.
The price is likely to form a double bottom. Today, the major support is seen at 1.3605, while immediate resistance is seen at 1.3745.
Accordingly, the GBP/USD pair is showing signs of strength following a breakout of a high at 1.3659. So, buy above the level of 1.3659 with the first target at 1.3745 in order to test the daily resistance 1 and move further to 1.3790.
Also, the level of 1.3833 is a good place to take profit because it will form a new double top at the same time frame.
Amid the previous events, the pair is still in an uptrend; for that we expect the GBP/USD pair to climb from 1.3600 to 1.3833 in coming days.
At the same time, in case a reversal takes place and the GBP/USD pair breaks through the support level of 1.3605, a further decline to 1.3519 can occur, which would indicate a bearish market.
Forecast :
- Uptrend scenario :
- An uptrend will start as soon, as the market rises above support levels of 1.3605 and 1.3632, which will be followed by moving up to resistance level 1.3745 so as to test the double top. Moreover, if the pair succeeds to pass through 1.3745, it will move upwards continuing the bullish trend development to 1.3790 to test the daily resistance 2, (weekly resistance 1 : 13833). However, if a breakout happens at 1.3605, this scenario may be invalidated.
Tips : Sometimes high fundamental analysis impact on the Forex on Thursday and Friday. Fundamental focus today will on the US currency ... it might follow the news of the most events of the major currencies in order to obtain a good fundamental analysis. From my experencies, I decided to buy above the weekly pivot point because I knew that these news will be good for currency. So, bought around the double bottom 1.2054 and set the stop loss below thelast bearish wave.
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