Resistance and a sell-off in GBP/USD?
The GBP/USD pair has some important levels of support/resistance beneath them: 1.5350, 1.5175, and 1.4975. They are significant because the retracement of the fall from 7/2014 may be over, and the question is can the 6/2015 high hold and will price begin to descend to the 04/2015 lows.
This downward sloping pitchfork and the story of a price it tells is significant because we may see the near-term future of the GBP/USD told here. If resistance is enforced, and we break to new lows than price will fall much lower. The retracement as mentioned earlier is over, and a sell-off in the pair has resumed.
On the other hand, if price breaks through the upper median line and moves higher we are instead in a broad consolidation that can send GBP/USD to retest the highs of 7/2014.
From a fundamental standpoint, we get UK CPI numbers tomorrow and USD CPI on Thursday. This plus Fed and BOE speak should significantly influence the pair.
This downward sloping pitchfork and the story of a price it tells is significant because we may see the near-term future of the GBP/USD told here. If resistance is enforced, and we break to new lows than price will fall much lower. The retracement as mentioned earlier is over, and a sell-off in the pair has resumed.
On the other hand, if price breaks through the upper median line and moves higher we are instead in a broad consolidation that can send GBP/USD to retest the highs of 7/2014.
From a fundamental standpoint, we get UK CPI numbers tomorrow and USD CPI on Thursday. This plus Fed and BOE speak should significantly influence the pair.