Currency Analyst since 2010

GBP/USD: trade idea

Dima Chernovolov

  • GBP/USD completed primary ABC correction ②
  • Next sell targets - 1.51600 and 1.5100

GBP/USD continues to fall after recently reversing down from the strong resistance level 1.5520 (former strong support which reversed the pair in December, as you can see below). The resistance zone near 1.5520 was strengthened by the 38.2% Fibonacci Retracement of the previous sharp extended downward impulse from September, upper daily Bollinger Band and by the upper resistance trendline of the narrow daily up channel which has enclosed the (C)-wave of the preceding primary ABC correction ②.

The downward reversal from this resistance area completed the aforementioned primary correction ②. GBP/USD is likely to fall further in the active primary downward impulse ③ toward the next sell targets - 1.51600 and 1.5100.

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