GBP/USD: daily analysis
By Felipe Erazo
Yesterday, the GBPUSD had a bearish day dominated by power, as this pair is doing a retracement to the 78.6 Fibo level (1.7087), so it is very likely that the GBPUSD is trying to fall to the dynamic support offered by the 500 EMA (red line). However, keep in mind that this pair could perform a bullish rebound at current levels, and the GBPUSD is in an area where there are strong supports.
However, if the pair manages to consolidate below the support level of 1.7059, the bearish trend could continue for several days, as now, the GBPUSD is forming a higher low pattern. The CCI indicator is below the -100 level, which could indicate an oversold market.
Trading recommendations: Don't place any intraday orders for today's session, because the GBPUSD has no clear patterns. Also, the GBPUSD is trying to form a higher low pattern, but by the other side, the 500 EMA could serve as dynamic support and the pair could perform a bullish rebound.