GBP/USD: sell target - 1.5100
By: Dmitriy Chernovolov
- GBP/USD falling inside impulse waves 3 and (3)
- Next sell target - 1.5100
GBP/USD continues to fall, following the earlier sharp downward reversal from the resistance zone lying between the resistance level 1.5300 and the 61.8% Fibonacci Correction of the previous downward impulse wave from the end of October (as you can see from the daily GBP/USD chart below). The downward reversal from this resistance zone created the daily Japanese candlesticks reversal pattern Bearish Engulfing – thereby completing the previous minor correction 2.
GBP/USD is likely to fall further in the active minor impulse wave 3 (which belongs to intermediate impulse wave (3) from October) toward the next sell target at the support level 1.5100. Strong resistance remains at 1.5300.