GBP/USD forecast

 H4 graph

The pair is trading on top of support 1.6770 (C trendline), which is a very important and determinant level. Generally, the pair is trading along uptrends: daily “B-B+” and H4 “L-L+”. Taking to consideration the importance of level 1.6770, situation may evolve in two variants:

1. The pair gets under 1.6770. In such case it will get to support 1.6675 (the lower bound of “L-L+” H4 uptrend). After that the pair is supposed to drop further, and if so it will set its target at support level 1.6470 (the lower bound of “B-B+” uptrend).

2. If the market manages rising above 1.6850, I suppose the pair will rise further to key resistance 1.6930.

 

 

The pair is trading along the “B-B+” uptrend, but it has closely approached key resistance 1.6930. The pair probably will not make it to the resistance if it drops below level 1.6675. In such case the pair will descend further to 1.6460 (B trendline) and, in case fall persists, to level 1.6330 (K trendline).
Still, as long as the pair is trading above 1.6675, up-trending potential to level 1.6930 is maintained.

 

 

   After getting over level 1.5300 (breaking the “Y-Y+” trend’s higher bound) the pair had set its target of growth to resistance level 1.6900 (“F” trend line). This level is meant to be reached in the course of “D-D+” uptrend. Upon reaching it, an intermediate resistance – level 1.6200 (“H” trend line and levels of Japanese candles) – will appear on the pair’s way. Due to the fact that 1.6200 is an important resistance, a correction is meant to follow from there and end up at support level 1.5300. Uptrend within the “D-D+” channel will be resumed from the same level and the pair will reach the target 1.6900. “D-D+” trend is completed in five waves.

 

 

   Bounce off level 1.3900 (“R” trend line) had provoked a rapid growth of the pair. The peak of growth is meant to be found at level 1.6900 (“F” trend line). Upon reaching this level there will be two variants of events to develop: