26.06.201209:26 Forex Analysis & Reviews: GBP/USD could be ready for a 600 pip move

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

The GBP/USD pair began moving in uptrend on April 13 after testing 1.4566. The price manages to reach new highs without giving any signals on potential reversal downwards.

Currently, the pair is testing 200 moving average and the uptrend trendline at the same time. In addition, the Demarker oscilator is testing the uptrend trendline being in the oversold zone. Clearly, the trend is upward and a rate is near the key support at 1.5555. This means that a great risk/reward opportunity is offered.

Consider buying while the price remains between the current level of 1.5605 and a low of 1.5555. The target area is near (+/- 20pips) 161.8% Fibonacci retracement level from the most recent corrective wave down, which is marked R3 (1.6158) on the chart. Daily close below S1 can be used as a signal for stop loss.

Support: 1.5555

Resistance: 1.5785, 1.5927, 1.6158

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.