The GBPUSD is currently in retracement mode but is still in a strong bearish trend. The BOE was dovish on its last statement as traders expect a rate hike delay in late 2016. Additional GBPUSD tanking was boosted by strong NFP report.
Technically the pair dropped after LVZ pattern was formed ( Low Volatility Zone ) which has historically been shown as a pre breakout consolidation pattern. This time LVZ is a part of POC zone which comes around 1.5170-90 (H3,WPP,61.8, EMA 89) and if the pair rallies to POC we could expect next leg of selling providing that 1.5220 stands firm (78.6, LVZ high). Alternatively the pair could show a T-89 pattern which will be the cue that the price has finished the retracement and is getting back into trending zig zag.
From targets perspective we need to watch important historical levels of support. 1.5025-1.4985 zone is the target zone for bearish move. I have put a Daily chart overlay on the top of intraday to show historical levels of support.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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