GBP/USD: Breakthrough, Retest And Continuation!
Morning traders, hope everyone is well! Let's kick start this week with a GBP/USD catchup.
Despite fears over the future of Britain, we are still seeing good volume and movement in this pair, just last week alone, this pair moved close to 200 PIPs! With the week finishing with a bearish biased heading back towards the golden 1.3000.
Opening this week at 1.30444, it's safe to say most likely support will hold throughout today above the monthly level. On a 4-hour timeframe I have placed on a FIB starting at 1.32700, that shows last weeks bullish move could be a rejection of the 61.8% zone.
This goes hand-in-hand with our counter trendline which was broken to the downside, followed by what seems to be a retest and continuation to the downside. I will be watching closely on this pair in the NY session to see if we can spot a short opportunity if the support at 1.3000 is broken.
Also to bear in mind is that the pound may come under pressure with the UK set to leave the EU at the end of this week unless the EU agree to an extension and/or a withdrawal deal can be agreed.