GBP USD Technical Forex Analysis for Forex Traders

The Pound has touched our resistance of 1.5278 on Friday, as the high was 1.5727, and it traded below there the whole time. We have clarified in Thursday’s & Friday’s reports the huge importance of this level. When we investigate the rising move from 1.5295. When we do, we see that it is a correction for the previous dive from 1.5996, which topped very close to the Fibonacci 61.8% level. The Pound reached 1.5727, the highest level since August 11th, whereas the important resistance is at 1.5728 (please refer to the attached chart). The most important level is definitely 1.5728. This level will determine everything for the medium term. If we break it, we will literally fly, and if we fail close to it, this pair will be frustrated and move south. Our resistance of the day is definitely 1.5728. If broken, we will target 1.5854 & 1.5905. On the other hand, it would sound bizarre to say that the Pound is weak, and we will not say that. But we do believe that as long as it is below 1.5728, it will be vulnerable. The first sign of a failure at 1.5728 will be going back to trade below 1.5660. If this happens, expect a big drop, targeting 1.5549 &1.5438.

Support:

• 1.5660: the rising trend line from Tuesday’s low on intraday charts.

• 1.5549: short term Fibonacci 38.2% resistance.

• 1.5438: short term Fibonacci 61.8% resistance.

Resistance:

• 1.5728: Fibonacci 61.8% for the whole drop from Aug 6th top.

• 1.5854: Aug 4th low.

• 1.5905: Aug 2nd & 10th high