GBP/USD Daily: Moving above the Ichimoku Cloud, the pair is now Testing 38% Fibonacci level
Trading Idea
Wait for confirmation above 38% Fibonacci and then enter a bullish position towards 50% Fibo resistance level
Technical reasons why: After the UK elections Mr. British Pound jumped back on its most recent uptrend, recovering from its down moves from last week. The RSI is head up touching the oversold zone but the pair is also scratching the upper band of Bollinger Bands so we could see a reversal before the pair shoots back up.
Hot Gossips: It mainly has to do with the election results but maybe Mr British Pound is high on the pretty little Princess Charlotte Elizabeth Diana?
Alternative Scenario: Below 1.5220 look for a reversal targeting 1.51 and 1.50 in extension.
Where to set your stops and limits:
| Support Levels | Turning Point | Resistance Levels |
|---|---|---|
| 1.51 | 1.54 | 1.56 |
| 1.50 | 1.52 | 1.5890 |
