Technical analysis of GBP/USD for April 02, 2018

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Overview:

The GBP/USD pair continues to move downwards from the areas of 1.4066 and 1.3972. Last week, the pair dropped from the level of 1.4110 to 1.4024. The level of 1.4066 coincides with a ratio of 50% Fibonacci on the H1 chart. Today, resistance is seen at the levels of 1.4066 and 1.4110. So, we expect the price to set below the strong resistance at the levels of 1.4066 and 1.4110; because the price is in a bearish channel now. Amid the previous events, the price is still moving between the levels of 1.4110 and 1.3972. In overall, we still prefer the bearish scenario as long as the price is below the level of 1.4110. Furthermore, if the GBP/USD pair is able to break out the bottom at 1.4024, the market will decline further to 1.3972 (daily support 2). Moreover, the price will probably fall into a bearish trend in order to go further towards the strong support at 1.3930 to test it again. On the other hand, if the price closes above the strong resistance of 1.4110, the best location for a stop loss order is seen above 1.4168.

The material has been provided by InstaForex Company - www.instaforex.com