GBPUSD:- Make Or Break At 1.3900
GBPUSD:- The last time we covered GBPUSD, we saw price push 150 PIPs higher but to only confirm a 3rd touch of the descending trendline and a rejection confirmation of a new Lower-Swing High. The price then proceeded to create a new lower, low retesting our weekly key level of 1.3750. The current price has retest a critical region of 1.3900 in which price will either see a break or bounce scenario occur. Having rejected the descending trendline on 4 occasions already, we are looking like retesting the dynamic resistance once more. If price can maintain itself on the daily timeframe below the 1.3900 area there is room for a continuation towards the 1.36200 are that previously acted as resistance for the price before breaking. Without many other supports below the weekly key level, the price could decline rapidly towards the support region of 1.36200.
Alternatively, if the descending trendline could be broken to the upside, we would look at using the previous Lower high points as target regions for the pair. A break would lead us to 1.4000 and inevitable to retest the highs of 1.4250 once again.
Previous:- As the pair dipped below the 1.4000 level, investors and traders alike were considering whether the bullish run had come to an end having reach multi-year highs and pre Brexit levels. The recovery in the strength of the GBP is remarkable and doesn't look like stopping anytime soon. On Wednesday we had a strong bullish hammer candle reject from the 61.8 Fib level and push back. towards the 1.4000 level once more. A break of this level would see the pair continue and equal the previous highs in the region of 1.4250. HoweverI i am personally favouring the GBP could be in for an extended run and look to push on higher towards the 1.4500 having lined up exactly with D1 extension levels from the Fibonacci wave pattern movement.
With GBP Retail sales to be released on Friday, we could expect positive data to help aid in the recent rally of the pair. If the news comes out better than expected the bullish continuation could occur rapidly