GBP/USD: trade ideas (June 20)
By Felipe Erazo
On the H1 chart, the GBP/USD is trying to form a lower high pattern below the resistance level of $1.7026. However, it is very likely that this pair start making retracements below that level and the nearest target would be the 38.2 Fibo level ($1.7007), as the GBP/USD is overbought. However, this pair could prolong its sideways movements for several more days.
If GBP/USD manages to make a breakout on the resistance level of $1.7079, it’s expected to rise to the level of $1.7133, which coincides with the 100.0 Fib extension level. GBP/USD remains above the 200 and 500 EMA and the CCI indicator is in the overbought zone, so corrective movements could come soon for this pair. For today's session is likely that this pair have quite slow movements.
Trading recommendations: Wait for a fall until the 38.2 or 50.0 Fibo level and place buy orders with take profit at $1.7062. Anyway, if the GBP/USD does a breakout at the resistance level of $1.7079, place buy orders with take profit at $1.7133.
Chart. H1 GBP/USD