FX.co ★ GBP/USD

Hello traders, On Friday, the price of the British Pound was corrected to the south, resulting in the formation of a complete bearish candle located within the previous day's range, settling below the support level marked at 1.33743 according to my analysis. In the current scenario, I consider it possible that the corrective southward movement may reach the nearest support levels. However, next week I will continue observing from the sidelines near the resistance level at 1.33743. There are two possible scenarios near this resistance level. The first scenario involves the formation of a reversal candle and a resumption of the southward movement. If this plan unfolds, I will expect the price to move towards the support level at 1.32128 or the support level at 1.31796. If the price consolidates below these support levels, I will anticipate further southward movement towards the support level at 1.30377 or the support level at 1.3012. Near these support levels, I will await the formation of a trading setup to determine the next trading direction. Of course, I acknowledge that during the price movement towards the mentioned distant southern target, there may be northern pullbacks that I plan to use to search for bearish signals from nearby resistance levels in anticipation of the price resuming its downward movement within the southern trend. An alternative scenario for price movement when testing the resistance level at 1.33743 would be a plan to consolidate the price above this level and continue moving upwards. If this plan materializes, I will expect the price to return to the resistance level at 1.34831 or the resistance level at 1.35749. Near these resistance levels, I will wait for the formation of a trading setup to determine the next trading direction. There are also possibilities for achieving distant northern targets, but as of today, I do not consider them as I do not see prospects for their quick realization. In general, to put it briefly, I do not plan to actively trade this instrument locally next week and will continue observing from the sidelines near the nearest resistance level.