GBP/USD forecast

   The pair rebounded from a very strong support level 1.6900 (“F” trend line, see monthly graph), formed a “double top” trend-turning figure and dropped below support level 1.6820 (below “M+” trend line). All of above is a strong signal of turn, which empowered the pair to drop to target support 1.6550 (the lower bound of “B-B+” daily uptrend).

   The facts mentioned above speak in favor of dropping to support level 1.6200 soon (the lower bound of “C-C+” weekly sideways trend). Drop below level 1.6550 will be a confirmative signal of this scenario and a cause of replacing the “B-B+” daily uptrend with a downtrend.

 

 

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   The pair rebounded from level 1.6900 (“F” trend line, see monthly graph) and went below support level 1.6820, which speaks about a need of dropping to support level 1.6550 (the lower bound of “B-B+” daily uptrend). In general, such events progression speaks about dropping to support level 1.6200 straight away (the lower bound of “C-C+” sideways trend). The market must get under level 1.6550 to confirm this scenario.

   Leaving the “E-E+” and “B-B+” uptrends speaks about the pair’s will to get under the lower bound of “D-D+” weekly uptrend (below level 1.6000) and to reach the target level at 1.5430. But due to a very strong support at level 1.6200 on the side of the “C-C+” trend’s lower bound, we should wait until the pair goes below level 1.6100 and confirm that intention. This will also be a signal of “D-D+” weekly uptrend’s turn and of replacing it with a downtrend.

   1.5430 is supposed to be the target level of the first down-trending wave. Next, a correction is possible towards resistance 1.6200 (“H” trend line and the crossing of “C” and “D” trend lines). The target of drop for the last wave will be set to 1.4355.

 

 

   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: