Monday, 17 July 2017

GBP/USD Found support at 23.6% Fibo

The GBP/USD pair had corrected from the extreme overbought conditions from last Friday and today is seen gravitating around 1.30 area.
On the four-hour time frame the price keeps advancing above the uptrending 20-day SMA, while RSI and stochastic retreated from the their extreme values. Both indicators developed bearish slopes, but yet have not enough directional strength to confirm bears’ return.
As clearly seen on the chart the correction has stopped at the 23.6% Fibonacci retracement of latest up leg – July 12th to July 14th, which is also acting as strong support level at 1.3040. In case of breaking this level, the pair will be poised to extend its decline towards 1.30 mark. 
Looking to the upside first resistance is seen at 1.3115 (Friday’s top) and next at 1.3160 9 (September 2016’s high).


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