GBP/USD Continues Falling

GBP/USD spent several weeks consolidating sideways above the support at 1.3040, forming multiple hammer candlesticks on the weekly time-frame above the aforementioned support level. Today the pair finally broke out below that level, rendering said hammer candlesticks false signals. The move to the downside currently continues and the pair has already broken out below 1.3000 as well. Next target is probably around 1.2950. A breakout below that support could lead to a further move to the downside towards 1.2900 and likely below it, towards 1.2700. The last low for the pair is at 1.1740, but that is a long-term target, obviously.

GBP/USD Is Rising

GBP/USD moved sharply to the upside today pushed by the fundamentals and after the pair formed a clear doji candlestick on the daily time-frame yesterday at the support at 1.3160. Currently the pair is testing the resistance at 1.3270 and the question is whether there will be a breakout above that level. If there is, the next obvious target is the (MA)89 indicator on the four-hour time-frame, which is at 1.3300. A breakout above that level in turn could lead to a further move to the upside towards 1.3450 or even towards 1.3600, which is the same indicator, but on the daily time-frame. On the other hand, if the pair continues falling and breaks out below the last low at 1.3100 there may be a new move to the downside towards 1.3000.

GBP/USD Is Rising

GBP/USD has been moving to the downside ever since it formed a clear double top on the weekly time-frame at the resistance at 1.4350, but the pair finally found some support at 1.3360. It has formed a very clear hammer candlestick on the same time-frame at that level and it has already begun moving to the upside. Currently the pair has almost reached the resistance at 1.3500, which coincides with the (MA)89 indicator on the same time-frame. Once it does reach it, and it probably will, the question will be whether it will break out above that level or bounce off from it. If the former happens there will probably be a move to the upside towards 1.3800. On the other hand, if the pair bounces off from that resistance it will likely fall back down to test the support at 1.3360 again.