Red lines- Fibonacci extension targets
GBPUSD was no exception yesterday after the announcement of the CPI numbers. Price was under heavy pressure and we saw GBPUSD fall towards 1.1480 from 1.1736. Price has formed a higher low and as long as this low holds, bulls have hopes for another leg higher. If bulls continue to respect the recent low made yesterday, then they could start a new upward move. If this is the case, then our 1st target will be at 1.18-1.1820. Is this start of a new upward move? Bulls need to defend recent lows otherwise this bullish scenario will get cancelled. At 1.1580 and at 1.1635 we find two important short-term resistance levels. Breaking above these two levels will increase our confidence of the short-term bullish scenario.
