GBP/USD probable new downward impulse

22.07.2016 / 13:48

Rating:

GBP/USD 22.07.2016

H4 chart.

Downtrend and correction to 23,6 Fibonacci of the last downward movement.

Still not tested break below diagonal and horizontal supports.

Price below resistances.

Technical indicators:

RSI(14) goes below 50 - sell

CCI(50) goes below 0 - sell

Price below SMA200 and SMA50

Sentiment: Market is calculating the probability for a rate cut at the next BoE meeting at record levels which is negative for GBP. On the other hand USD is supported by speculations for probable rate hike at the September FED meeting.

Entry now or after closing of the current bar and correction.

SL: 1.3210

Alternative scenario: If price goes above the last supports this will negate the negative scenario.

Jr. Trader Nikolay Georgiev

Varchev Traders

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GBP/USD probable new downward impulse

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