FBS: GBP/USD seeks correction
Tatyana Norkina, FBS
The British currency failed to fix above 1.7130 on Friday, as there are a lot of resistance levels ahead.
Ichimoku. H4: There are the upper border of the Cloud and the Kijun and Tenkan lines lying at 1.7130. The price is now trying to fix below them. This could trigger selling of the cable and pull the pair down to 1.7090 or even 1.7050.
H1: the pair is trading below the Cloud. The indicator is strongly bearish: descending Cloud, dead Cross. Break below the 1.7110 support is likely to cause a decline of the pair.
Break above the 1.7130 and a fix above it would confirm the end of the consolidation phase and the resumption of growth.
Technical levels: support – 1.7110, 1.7090; resistance – 1.7130.
1. Sell — 1.7110; SL — 1.7130; TP1 — 1.7090; ТР2 – 1.7050.
2. Buy — 1.7130; SL — 1.7110; TP1 — 1.7160; ТР2 – 1.7220 (limit order).