GBP/USD completed it's sixth straight week of decline, and
although most are screaming that the next level will
eventually be as low as the 1.25 level, there just might be
a chance of a bullish trend continuation from the 1.33 level.
I realize most will criticize this assertion and I am not
insisting that price will resume a bullish trend from the 1.33
level, however, technically it may be possible. Price closed
just above the 61.8% retracement level measured from last
year's June low - almost year to date - to the 1.4377 level above.
Also, this is a Fibonacci confluence zone formed by the
adjacent 38.2% retracement level measured from the 1.5930
level to 1.1905.
The 1.33 level is significant also because it holds above
1 year resistance to now possibly support trend line.
Should price find support here, the next target may be
the 3 year resistance trend line, and following a
projected 3 drives pattern, price may eventually end up
breaking the 11 year trend line.
All this is speculation for now, but if price rotates back
to the upside from the 1.33 level with a close above the
1.3740/50 level then it is very plausible that there might
be more in store for Sterling bulls.
Happy trading
although most are screaming that the next level will
eventually be as low as the 1.25 level, there just might be
a chance of a bullish trend continuation from the 1.33 level.
I realize most will criticize this assertion and I am not
insisting that price will resume a bullish trend from the 1.33
level, however, technically it may be possible. Price closed
just above the 61.8% retracement level measured from last
year's June low - almost year to date - to the 1.4377 level above.
Also, this is a Fibonacci confluence zone formed by the
adjacent 38.2% retracement level measured from the 1.5930
level to 1.1905.
The 1.33 level is significant also because it holds above
1 year resistance to now possibly support trend line.
Should price find support here, the next target may be
the 3 year resistance trend line, and following a
projected 3 drives pattern, price may eventually end up
breaking the 11 year trend line.
All this is speculation for now, but if price rotates back
to the upside from the 1.33 level with a close above the
1.3740/50 level then it is very plausible that there might
be more in store for Sterling bulls.
Happy trading