GBP/USD: sell targets - 1.4000 and 1.3840
By: Dmitriy Chernovolov
- GBP/USD falling inside intermediate impulse wave (5)
- Next sell targets - 1.4000 and 1.3840
GBP/USD recently reversed down from the resistance zone lying between the resistance level 1.4400 (which reversed the price at the end of February), the upper daily Bollinger Band, 38.2% Fibonacci correction of the previous sharp downward impulse from December. The downward reversal from this resistance zone created the daily Japanese candlesticks reversal pattern Bearish Engulfing - completing the previous intermediate ABC correction (4) from last month.
GBP/USD is likely to fall further in the active intermediate impulse wave (5) toward the next sell target at the round support level 1.4000 – the breakout of which can lead to further losses toward 1.3840.