FBS: trade recommendation for GBP/USD
By Tatiana Norkina, FBS analyst
The currency found support in the 1.6960 area which halted the downward trend. Note that the pair is now very oversold, as it’s indicated by the location of the Chinkou Span line on H4.
Ichimoku indicator. Consequently, consolidation above $1.6960 on Friday can be extended in the near future. We don’t rule out the possibility that the bulls may try to take revenge, restoring the currency pair at least to the 1.7000/1.7010 resistance area.
Ichimoku indicator on both timeframes is bearish, which means that sellers dominate the market. Therefore, the downward trend may once again begin to gain momentum from 1.7000.
Technical levels: support - 1.6960; resistance - 1.7000/1.7010, 1.7030.
1. Sell - 1.7000; SL - 1.7020; TP1 - 1.6960; TP2 - 1.6940.