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Here is the weekly GBP/USD chart. I’m always asked about why i watch Fibonacci retracements in such big charts, and the fact is that I just pay attention to that levels, when we are close to them, like in this case, and wait for the weekly close, to see if i can define next week upcoming trend. Anyway, pair has failed above the 50% of the rally back in August, and despite a spike above it, seems we are going to fail again (we need the week close to be sure of that). As far from the Fibo we close the week, less chances will have pound to regain upside strength; even, seems we are making a double roof also here, something far from being complete as neck line lies at the 1.5730/60 strong area. Anyway, i will be following it with patient. Weekly close clearly above 1.6840, will likely signal further rises with 1.7000 as a main and first target.
Turning to smaller time frames, pair is around 1.6640/60 that probe strong in the past, yet indicators point for further falls ahead. next support comes at the 1.6585/1.6600 area, while under this last, 1.6520 will be next and key support to consider: daily close under that level, will signal further falls for next week. Being a bit oversold in smaller time frames, an upside correction will find resistances at 1.6690/1.6700, followed by strong 1.6740 that should cap the upside.
DEAR VALERIA
HI
I always follow your analysis.they have excellent basic tech. and always vey helpfull. thanks a lot for these.
about GBP it seems fall from 7050 is choppy and indicate correction shape. so 7050 not to be top or at least we should wait for compliting larger correction for example double ZZ or triangle.
wahat is your idea ?
Best Regards
Hi Soltani, tks for your comment! Yeap, fall is quite choppy, and discarding the spike to 1.7050 to the upside, or the one around 1.5700 to the downside, if you take a look at daily charts, you will see that pair has been stuck between 1.60/1.66 from early June… almost 5 months. I see it too rangy to really think of a top, or a reversal. Anyway, yes i do expect some larger correction, and the length and strength of it, will help me define furhter bias in the pair: a choppy correction to the 1.5700 area, if reached, and not breaken will likely show correction is complete, and back in range yet to the upside. The fact is that at current levels and far from the Fibo, upside chances from here start to reduce, at least for me.
Regards
Val