GBP/USD: trade recommendations
By Felipe Erazo
During yesterday's session, GBP/USD had a significant bullish momentum above the 200 EMA and now this pair is forming a lower high pattern above the 23.6 Fibo level ($1.7088). However, keep in mind that the GBP/USD could make a retracement to the $1.7059 level, where is located the 50.0 Fibo level.
If GBP/USD manages to make a breakout at that level, it would be expected to fall to the level of $1.7029 (78.6 Fibo level), although there are high chances that this pair make a rebound on the 50.0 Fibo level. On the other hand, if the GBP/USD manages to make a breakout on the resistance level of $1.7125, next target would be the level of 1.7165 (100.0 Fibo extension level). The CCI indicator is showing a bearish divergence.
Trading recommendations: Place buy orders if the GBP/USD breaks the resistance level of $1.7125, with a take profit at 1.7165. Also, you can add long positions when the GBP/USD performs a rebound in the 50.0 Fibo level ($1.7059), with stop loss at $1.7029 (78.6 Fibo level).
Chart. H1 GBP/USD