GBP/USD forecast

   The pair is trading under level 1.6335 (below the “C” trend line), which speaks in favor of dropping to level 1.5950. Some correction is developing now, which is supposed to be finished at 1.6335. I suggest selling from current levels with a stop set above 1.6385 and the target set to 1.5950.

 

   Alternatively, in case the market rises above level 1.6385, a “double top” trend-turning figure will be formed and the pair will set its target of growth to level 1.6510 and over. And if it then will rise above 1.6510, it will get to a huge free upper area, which it will be able to pass easily. If it will go that way, the target will be set to level 1.6900.

 

 

   The pair rebounded from support level 1.6170 formed by the crossing of trend lines “H” (monthly trend line) and “D” (the lower bound of daily uptrend). This was followed by a drop below the lower bound of “C-C+” daily sideways trend with subsequent return to the channel. That fact speaks that there is a very strong support under the channel and now the pair will try to find a stronger resistance in order to test level 1.6170 again. But the pair may not find proper resistance since there are no strong resistances above level 1.6510, and by going above level 1.6510 the pair will break the “B-B+” daily downtrend, after which it is supposed to rise to level 1.6900. For the reasons above the pair either will turn from current levels for testing 1.6170, or it will eventually rise above level 1.6510.

 

   Two variants of events to proceed are seen:
1. In case the pair rises above level 1.6510, it will get to resistance 1.6900 / 1.6950.
2. In case the pair drops below level 1.6070, it will get down to support 1.5480.

 

 

 

   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: