FX.co ★ GBP/USD

The currency pair GBPUSD - D1 chart. The current month of April is coming to an end and it has shown a rapid growth. The bullish divergence on the MACD indicator and the double bottom reversal pattern on the chart warned about this growth. Additionally, some interim decisions regarding Iran were made, causing the US dollar to weaken in the market. The price reached the horizontal resistance level at 1.3458, hitting a peak and then immediately dropping back down. This was followed by profit-taking and new selling, leading to a price decrease. Later, the price approached this peak again and significantly surpassed it with a rapid rise. By applying a Fibonacci retracement to the downward movement since the end of January this year, it can be seen that the price reached the deepest correction level of 61.8. The second wave often ends at this level before the third wave downwards. This may be the case here as well, representing the second wave of the weekly period. Naturally, there was profit-taking and the price started to decline. In addition, the CCI indicator was moving down from the overbought zone at that time. A descent to the horizontal support level at 1.3458 was expected, which indeed occurred. Initially, the price hesitated near this level, then a real test was conducted followed by a bounce off the level and a rising candle. If this level is broken downwards and becomes a mirror level, changing from support to resistance, the probability of the third wave of the higher weekly period exceeding the 1.3012 mark will increase. In such conditions, there is no talk of buying at the moment, only formations for selling are considered within the day. I believe a breakthrough will occur, as other major currency pairs are also poised for strengthening the US dollar in the near future. Therefore, buying here is not advisable. I expect a decline and a new test of the support level at 1.3458 for a breakout.