The GBP/USD pair broke resistance which turned to strong support at the level of 1.3160 yesterday.
The level of 1.3160 coincides with 61.8% of Fibonacci, which is expected to act as major support today. Since the trend is above the 61.8% Fibonacci level, the market is still in an uptrend.
Also, it should be noticed that, the level of 1.3160 represents the daily pivot point.
From this point, the GBP/USD pair is continuing in a bullish trend from the new support of 1.3160. Currently, the price is in a bullish channel.
According to the previous events, we expect the GBP/USD pair to move between 1.3160 and 1.3312.
On the H1 chart, resistance is seen at the levels of 1.3312 and 1.3360. Therefore, strong support will be formed at the level of 1.3160 providing a clear signal to buy at 1.3160 with the targets seen at 1.3312.
If the trend breaks the support at 1.3312 (first resistance) the pair will move upwards continuing the development of the bullish trend to the level 1.3360 in order to test the daily resistance 2.
Also, it should be noticed that the double top is set at 1.3312. Additionally, the RSI is still signaling that the trend is upward as it remains strong above the moving average (100). This suggests the pair will probably go up in coming hours.
Thus, the market is indicating a bullish opportunity above 1.3250 for that it will be good to rebuy at 1.3250 with the first target of 1.3312. It will also call for an uptrend in order to continue towards 1.3360. The daily strong resistance is seen at 1.3395.
However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 1.3150.
Amid the previous events, the pair is still in an uptrend, because the GBP/USD pair is trading in a bullish trend from the new support line of 1.3160 towards the first resistance level at 1.3312 so as to test it. If the pair succeeds to pass through the level of 1.3312, the market will indicate a bullish opportunity above the level of 1.3312 with next targets of 1.3360 and 1.3395..
The material has been provided by InstaForex Company – www.instaforex.com
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