GBP/USD Retesting Buyers!
The GBP/USD pair dropped in the short term after failing to reach the former high of 1.1642. Now, the instrument is almost reaching the 1.1479 and 1.1435 former highs. These levels represent downside obstacles (upside obstacles turned into downside obstacles).
The uptrend line represents a downside obstacle as well. As long as GBP/USD stays above it, the price could try to resume its growth.
Only dropping and stabilizing below the downtrend line could announce that the upside movement ended and that the pair could develop a strong drop.
GBP/USD Trading Conclusion!
The 1.1435 – 1.1479 levels represent a demand zone. Testing and retesting this area and staying above it may open the door for a new upside movement at least towards the 1.1642 former high (upside target). A larger growth could be confirmed only if the rate jumps and stabilizes above the former high.
The material has been provided by InstaForex Company – www.instaforex.com