GBP/USD: British Pound bounced at 1.25345 and consolidated following a massive drop
|GBP/USD: British Pound bounced at 1.25345 and consolidated following a massive drop
What is going on now with GBP/USD?
GBP/USD: The British Pound broke through 1.27245 as mention in yesterday's update and reached 1.27540; however, the pair failed to continue and retreated to 1.27245 support. The Pound slipped below 1.26985 during the European session and suffered a considerable drop taking out all short sell estimate targets and also major support levels at 1.26380 and 1.25345 before bouncing at 1.25345 support.
Our forecast
GBP/USD: The British Pound slipped below the second major support price point at 1.25435 in this morning's trades but fought back and bounced at 1.25435 pushing prices back up to 1.25560. The Pound currently consolidates in a very tight price range at 1.25560 and could break out soon. The Pound needs to break and maintain trading activities above 1.25695 to head back up. The pair could continue down to 1.25345 if it fails at 1.25560.
Support/Short-1.25560, 1.25345, 1.25105, and 1.24730
Resistance/ Long - 1.25695, 1.25795, 1.26155, and 1.26380
Chart 1: The short-term view of the GBP/USD price action in the 60 minutes price chart highlights the direction of the trend and the support and resistance price points
Chart 2: The short-term view of the GBP/USD price action in the four hours price chart highlights the direction of the trend and the support and resistance price points
We explain the market movements and its potential next move to help and guide you to possibly make the right decision on when to enter, apply to stop losses to protect your capital, take profit and exit your position.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.