- Stop loss 1.5683
- Entry level 1.5549
- First Target at 1.5360
- Next targets to test at 1.5293, 1.5254
The pair, GBP/USD is intact at 1.57 resistance level. But a deeper decline is expected at 1.5293 support level. We’re favouring the case that a rise is finished at 1.5927; retesting the levels at 1.5549 will confirm this to be bearish case.
At this point, we’d expect resistance from 1.57 to hold and pull back for some corrective patterns from current levels for short term downside bias with price action closing below the fib level 23.6 and back to back two bars reversal pattern aligning with trend line which holds a strong resistance, the trends being tested and rejected.
However, a sustained trading below current price action should target first level at 1.5360. And a break from here should expect price to move deeper at 1.5293 and later if broken lower at 1.5254 level. Nonetheless, above 1.5683 minor resistances will dampen this bearish view.
Outlook remains bearish for the week.
- Gross Domestic Product, Mortgage Approvals
- Consumer Credit, GFK consumer confidence for the pound
- Durable goods Order, Dallas Fed Manufacturing Index
- S&P/case-shiller Home Price Indices, Consumer Confidence
- Fed’ Monetary Policy Statement with Fed Interest Rate Decision
- Gross Domestic Product, Initial Jobless Claims followed by Michigan Consumer Sentiment Index
Area of Interest
- Strong Resistance at 1.57 which is flip area for current levels.
- Bearish pattern with two bar reversal at resistance levels are stronger and look for new lows.
- Pair finding resistance on trend line and price action holding the levels.
- Key area to target to the downside shall be at 1.5333 around fib level of 38.6 – 50.0%.
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