GBP/USD: correction expected

September 24, 2015

Current trend

Yesterday the US Dollar was strengthening across the market, while the Pound was falling and in the GBP/USD pair, it lost almost 120 points.

Today a bunch of macroeconomic publications is due from the US, and at midnight (GMT +3), the Fed President Janet Yellen is giving a speech.

Support and resistance

On the daily chart, OsMA and Stochastic signal further fall, while on the 4-hour chart they start giving a signal for trend reversal. An upward correction in the pair can reach the levels of 1.5450, 1.5470 (ЕМА144 on the 4-hour and daily charts), while a consolidation above the level of 1.5520 would create prerequisites for further growth towards 1.5600 (38.2% Fibonacci), 1.5700, 1.5900 (50% Fibonacci). Thebreakdownofthelevelof1.5230 would allow the pair to fall to 1.5180 (June and August lows), 1.4600 (year lows).

Today, the GBP growth in the pair can be supported by its growth in the EUR/GBP pair, where the price remains near strong resistance levels at 0.7340, 0.7350, from where the pair constantly bouncing back since the middle of August.

Supportlevels: 1.5230(23.6%Fibonacci), 1.5180.

Resistancelevels: 1.5350, 1.5470 (ЕМА144 on the daily chart), 1.5520 (ЕМА200 on the daily chart).

Trading tips

Open short positions from the level of 1.5230 with targets at 1.5200, 1.5150 and stop-loss at 1.5260.

Long positions can be opened after the breakout of the level of 1.5290 with targets at 1.5340, 1.5380 and stop-loss at 1.5250.

Publication source
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