Time to rebound (GBP/USD pair).
The GBP/USD pair continues to move downwards from the level of 1.3758. Yesterday, the pair dropped from the level of 1.3758 to the bottom around 1.3568. But the pair has rebounded from the bottom of 1.3568 to close at 1.3700.
Today, the first support level is seen at 1..3684, the price is moving in a bullish channel now.
Furthermore, the price has been set above the strong support at the level of 1.3661, which coincides with the 50% Fibonacci retracement level.
This support (1.3661) has rejected several times confirming the veracity of an upward. Additionally, the RSI starts signaling an upward trend.
According to the previous events, the USD/CHF pair is still moving between the levels of 1.3684 and 1.3790; so we expect a range of 106 pips.
If the trend is able to break out through the first resistance level at 1.3716 , we should see the pair climbing towards the double top (1.3758) to test it.
Therefore, buy above the level of 1.3700 with the first target at 1.3758 in order to test the daily resistance 1 and further to 1.3790.
Also, it might be noted that the level of 1.3758 is a good place to take profit because it will form a double top.
On the other hand, in case a reversal takes place and the GBP/USD pair breaks through the support level of 1.3661, a further decline to 1.3565 can occur which would indicate a bearish market.
Overall, we still prefer the bullish scenario which suggests that the pair will stay below the zone of 1.3661 today.
