GBP/USD to pull back from 1.7332
By Felipe Erazo
The GBPUSD has consolidated above the 38.2 Fibo Level (1.6428) on the monthly chart, which would mean that this pair has a clear path to climb up to the resistance level of 1.7332 (50 Fibo Level). In our technical analysis, we can say the GBPUSD had that bullish momentum because of the support offered by the 23.6 Fibo Level (1.5310), in addition to the 500 SMA (red line).
If the pair manages to make a breakout on the resistance level of 1.7332, it’s expected to rise to the level of 1.8235, which coincides with the 61.8 Fibo Level. However, it is likely that the GBPUSD finds resistance at 50.0 Fibo Level and performs a pullback from this level to fall back to the support level of 1.6428, which is supported by the overbought levels that CCI indicator is showing.
Trading recommendation: If you are buying this pair in the long term, we recommend to close the positions when the GBPUSD touches the resistance level of 1.7332, because this pair could do a consolidation for months.
Chart. Monthly GBP/USD