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05.09.201612:24 Forex Analysis & Reviews: Technical analysis of GBP/USD for September 05, 2016

Long-term review

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Overview:

Last week, The GBP/USD pair broke resistance which turned to strong support at the level of 1.3241. The level of 1.3241 coincides with 61.8% of Fibonacci, which is expected to act as major support today. Since the trend is above the 61.8% Fibonacci level, the market is still in an uptrend. From this point, the GBP/USD pair is continuing in a bullish trend from the new support of 1.3241. Currently, the price is in a bullish channel. According to the previous events, we expect the GBP/USD pair to move between 1.3141 and 1.3536 (1.618% Fibonacci). On the H1 chart, resistance is seen at the levels of 1.3435 and 1.3536. Also, it should be noticed that, the level of 1.3357 represents the daily pivot point. Therefore, the price of 1.3250 will be formed at the level of 1.3250 providing a clear signal to buy with the targets seen at 1.3445. If the trend breaks the support at 1.3445 (first resistance) the pair will move upwards continuing the development of the bullish trend to the level 1.3536 in order to test the daily resistance 2. However, stop loss is to be placed below the level of 1.3210.

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