Denis Joeli Fatiaki
Independent Analyst
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
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