We have seen a rally of the 126.75 low. However, we still need a clear break above minor resistance at 129.31 and more importantly, a break above resistance at 130.06. At present, the pair is building a bottom.
So, for now, we should expect minor support at 127.70 that can protect the downside for another test of minor resistance at 129.31 and a break above should open the upside for a firm test of resistance at 130.06.
Only an unexpected break back below support at 126.78 will spoil bullish count once again.
R3: 130.06
R2: 129.64
R1: 129.31
Pivot: 128.75
S1: 128.00
S2: 127.70
S3: 127.33
Trading recommendation:
We bought GBP at 127.80 and we have placed our stop at 126.70
The material has been provided by InstaForex Company - www.instaforex.com