GBP/USD forecast

 H4 graph

   The pair is trading along the “a2-a2+” uptrend. It is set against a rather strong support 1.6640 (the lower bound of sideways trend).

If after that the pair won’t manage to rise above level 1.6700 and will drop below 1.6470, a correction will start and the pair will retreat to support level 1.6260 (K trendline).

Otherwise, if the pair rises above level 1.6700, upside momentum will become stronger and we will be expecting the pair to rise at target resistance 1.6900.

 

 

   The pair is trading along a sideways trend, which is stating that stable and wide corrections may occur.

Level 1.6640 (C trendline) is a strong resistance, which is holding the market at the moment. Taking that level into consideration there are 2 variants of events to proceed:

1. The pair rebounds off 1.6640 and in case it drops below level 1.6470, it will get to support 1.6260. Next, if the market manages to consolidate above this support, we may consider possibility of upside to level 1.6900.

2. The pair continues its upside after breaking above level 1.6700; in such case it will approach key resistance 1.6900.

 

 

   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: