The Daily chart depicted above reflects that the GBP/USD pair could break its long-term downtrend line of January. Since then it has been trading within an uptrending despite some sideways consolidation in November and March.
Although the GBP/USD pair showed a significant bearish reaction towards 1.5950 - 1.6000 which gave some bearish expectations. The pair has failed to break through the level1.5800 which allowed the bulls to make a strong push to the upside and break 50% & recently 61.8% Fibonacci levels at 1.5925 & 1.6090 respectively.
It is crucial that a short-term uptrend line was broken in the first week of April which was tested at 1.6125 last Friday which is expected to constitute a solid resistance level at 1.6262 to prevent the further upside movement.
On the 4H chart, we see that the GBP/USD pair has recently broken the consoildation range between 1.6077-1.6145 with successful retesting which allowed the GBP/USD to resume its bullish movement towards 1.6262.
SELLING the GBP/USD pair at 1.6262 with a small lot size is recommended as long as the GBP/USD pair shows some bearish respect for the price level on the lower timeframes.
TP levels are to be located at 1.6155 & 1.6000 with SL placed above 1.6305.
Price Zone 1.5930 - 1.5980 is recommended as a valid Long-term BUY entry with SL located below 1.5810.
The material has been provided by Instaforex Company - instaforex.com
