- In the short term
- M15 min chart.
The GBP/USD pair stays depressed above the spot of 1.3600 - 1.3622 since four days. Hence, the GBP/USD pair now seen within 1.3600
- 1.3650.
From here, the bias is tilted to the upside for that any bullish market is viewed as part of a 1.3600 - 1.3622 range for now. Looking ahead, if the GBP/USD closes above 1.3622, it would indicate the start of continuing for an extended period above the levels of 1.3600 and 1.3622.
The GBP/USD pair dropped sharply from the level of 1.3758 towards 1.3640. Now, the price is set at 1.3640.
The resistance is seen at the levels of 1.3688 and 1.3715. Volatility is very high for that the GBP/USD pair is still expected to be moving between 1.3600 and 1.3715 in coming minutes.
In the short term, we expect the GBP/USD pair to continue to trade in a bullish trend from the new support level of 1.3600 to form a bullish channel. Also, it should be noted that major resistance is seen at 1.3758, while immediate resistance is found at 1.3638 (daily pivot point).
According to the previous events, the pair is likely to move from 1.3600 towards 1.3638 and 1.3715 as targets.
Immediate resistance is seen at 1.3638, which coincides with a ratio of 38.2% Fibonacci retracement. Currently, the price is moving in a bullish channel.
This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. The price is still above the moving average (100).
Therefore, if the trend is able to break out through the first resistance level of 1.3638, we should see the pair climbing towards the daily resistance at 1.3715 to test it.
In other words, buy orders are recommended above 1.3600 with the first target at 1.3638. Then, the pair is likely to begin an ascending movement to 1.3715 mark and further to 1.3758 levels.
However, if the pair fails to pass through the level of 1.3758, the market will indicate a bearish opportunity below the level of 1.3758. So, the market will decline further to 1.3638 in order to return to the daily pivot point (1.3638). Moreover, a breakout of that target will move the pair further downwards to 1.3600. Daily range 1.3600 - 1.3758.
