For the past 2 weeks GBP/USD went up with 400 pips and this is why we believe we might be looking at a trend reversal. The strong bullish momentum is confirmed by the Golden Cross, a classic buy signal, which supports the hypothesis that buyers are again in control. After reaching a swing high at 1.2550, we registered a minor pullback, triggered by profit taking. The 120 pips correction stopped at 1.2430, which aligns with the 23% Fibonacci retracement level. This level has been a historic support zone, where corrections find their bottom and prices are expected to pick up with the current trend. Indeed, GBP/USD bounced off the 23% Fib with 30 pips already and we expect the price will revisit the are around 1.26, before we see another correction.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.