bounced back from the cloud support and 61.8% retracement
of the move started on April
10. Currently bulls are under pressure and need to hold the level 1.2600 to resume long-term bullish trend
. From current levels I cannot remain Bearish
on sterling as the pair reached my target area and I do believe that GBPUSD
is in long-term recovery since it has made a low in a flash crash in October 2016. In Last month I mentioned in my analysis that a big correction is due in pound and also mentioned my targets for Bears and those levels are achieved. I am gonna mention my previous analysis in the comment section below so that you can compare and understand better. Now I believe the Bearish
move in pound is over at 61.8% retracement
that lies at 1.2600-1.2620 but still it's too early to say as the pair is below the trend line
and bulls need to break above it. Bulls need to protect 61.8% retracement
level otherwise long-term bullish
recovery trend will be in trouble. I remain bullish
on pound as long as bulls keep defending 1.2500-1.2600. Below 1.2500 trend will be Bearish
, until then I am bullish
and looking for new highs now above 1.3200. Resistance lies at 1.2830-1.2850, if taken out then we can see pound climbing towards 1.3050, above this next resistance lies at 1.3300-1.3400. Momentum indicators are not showing any sign of trend reversal yet but I believe the clear picture of the Bullish trend
will be seen next week. Anyway I am going Long from the best possible position on the coming Monday and would advise long-term traders to do that too.
Recommendations: Open Long positions from anywhere between 1.2650-1.2700 with stop loss at 1.2500 and set your target at 1.3200.
For short-term traders I would advise to buy the pair on dips.