GBPUSD (cmp $1.2696)
GBP against USD witnessed a sharp recovery from 1.1450 to 1.3051 during Oct ’16-May’17 and again turned down and breached its crucial trend line support of $1.2750. Pair traded with clear negative tone from last couple of days as we mentioned in our last blog too. Now the initial support seen at $1.2650 and sustained move below this level will confirm the continuation of the bearish phase that target looks $1.2360 and then expecting to touch recent bottom of $1.2106 mark. The bearish trend scenario will remain valid efficiently until it is trading below the same. Pair traded below its 50 DMA that keeps pushing the price to the downside. Holding below 1.2650 is important for the continuation of the suggested decline. Alternatively, on the higher side hurdle is $1.2820 and close above the same will turned our outlook towards bullish phase. MACD & RSI indicators both are showing that buying momentum is now changing to selling momentum
Expected trend for near term: (Bearish)
Recommendation
Sell GBPUSD below $1.2650.Stop loss above $1.2820.Target $1.2360---$1.2106.
More will update soon!!
