GBP/USD: break of diagonal resistance but still below 1.2430 - key level

GBP/USD: downtrend and corrective movement.

Correction to levels of horizontal resistance 1.2430. Only break above it will open the way to the GBP to rise. Devouring bar about resistance - bearish signal, indicating that there may be a decrease to levels of breakthrough to test around 1.2276, i.e. several bars.

A break of diagonal resistance, which increase the probability for a possible new uplink wave, which can happen if there is a break above 1.2430.

DeM broke аbove 0.7, which gives a signal that short-term movement is Long, as bearish bars are currently only correction of short-term upward movement.

Possible support around the levels around 1.2276 breakthrough

20EMA  passed over 50 EMA price above them - possible new corrective wave up - correction of medium-term downtrend

Currently the price is between the levels of support 1.2276 and resistance 1.2430. Long if we test and support new price action signal up, a sell if the price back around resistance levels 1.2430
Stops just over 30 pips resistance or below support.
Stefan D. Angelov - Head of Stocks Trading

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