Cable Could Be Targeting 50% Fibo Level From January

GBPUSD closed strongly higher last week after crossing the recently broken trend-line connected from above 1.6300. This suggests that recovery from 1.4830 could be deeper than firstly thought.

As such, we labeled the recent big fall as a completed five wave move in wave I, followed by a corrective bounce which we think is wave II. W

ith that said, recovery from the lows is just temporary so we must be aware of a new sell-off once pair finds a resistance in one of the Fibonacci retracement levels (38.2%,50% or 61.8%).

For now sentiment is trying to turn bullish again, but will not last long. Break of 1.5020 will put pair back in bearish mode.

For more analysis visit us at www.ew-forecast.com

Don’t miss out, Special offer for new members
2 MONTHS FOR THE PRICE OF 1

Get the 5 most predictable currency pairs

Leave a Reply

Your email address will not be published. Required fields are marked *