GBP/USD: trade idea
By Dima Chernovolov
• GBP/USD reverses from resistance zone
• Likely to fall further to 1.5000
GBP/USD recently reversed down form the resistance zone lying at the intersection of the resistance level 1.5200 (which also previously reversed the price at the start of this month, as you can see from the daily GBP/USD chart below) and the 38.2% Fibonacci Correction of the previous downward impulse from the end of December. The downward reversal from this resistance zone continues the currently active minor impulse 5 of the larger, intermediate downward impulse wave (3) from the middle of last September.
GBP/USD is likely to fall further – in line with the overriding downtrend visible on the daily charts - toward the next round support level 1.5000 (which reversed the pair last week). Sell stop-loss can be placed above the résistance level 1.5200.