GBPUSD to hit 1.24 again!
The price of the GBPUSD is currently close to a resistance zone. This zone has been tested several times in the past.
As you can see, I have drawn several zones. These zones have been tested several times, with the exception of the green major support zone. This is a point that has not been exceeded. When the price reaches this zone, a reversal will most likely arise.
Trendline 1 is the support line. As you can see, this trendline is respected several times and is therefore an important part of our analysis.
Trendline 2 is the resistance line. As you can see, this trendline is respected several times and this is also an important part of our analysis.
The blue trendlines are an indication and these are not essential. I have divided the chart into 3 parts. as long as the price remains in zone 1 we have a strong downward movement. Should the price shift to zone 2, we will have a less strong market direction. Upon reaching zone 3, a new trend will arise. I do not expect that this will happen in the short term.
Expectations:
I expect that the GBPUSD will soon drop significantly with a possible fall to the 1.24 zone. I can not predict whether this will be via zone 1 or zone 2. As you can see, the rate is currently in a descending broadening wedge. I therefore expect that the downward movement will continue for a while. I think the small upward movement is short-lived and only a retracement of the trend.
Fundamental:
Currently there is chaos in GB. The English doubt whether the Brexit deal is a good idea and whether it should continue. Should the Brexit fail, this will have major consequences for Theresa May (Premier GB). This will make her position impossible and this will affect the GBP.
By combining the technical and fundamental analysis I expect that the price of the GBPUSD will make a big downward movement in the long term.
