Review and dynamics
At the beginning of the month the pair GBP/USD had rebounded from resistance level of 1.4725 (ЕМА200 on the daily chart) broke out support level of 1.4625 (Fibonacci 38.2% to the decline from the level of 1.5230 since mid December 2015) and 1.4590 (ЕМА144 on the daily chart). Currently, the pair continues to decline. At the moment the pair is at support level of 1.4380 (ЕМА50 on the daily chart and ЕМА200 on 4-hout chart).
On the daily and 4-hour charts the indicators OsMA and Stochastic are reversing towards the short positions. If downward movement continues and the price consolidates below support level of 1.4335 (Fibonacci 23.6%), the pair will go down to the lows of April at the level of 1.4100 (lower line of the ascending channel on the daily chart) and 1.4045, or probably, down to 1.3860 (lows of the year).
As an alternative scenario the pair may rise up to resistance level of 1.4725 (ЕМА200 on the daily chart), 1.4800 and 1.4860 (Fibonacci 50%). However, this perspective is unlikely due to poor UK macro-economic, possibility of the UK’s exit from the EU and due to the difference in the monetary policies of the US Fed and the Bank of England.
Short positions are preferable.
Support levels: 1.4380, 1.4335, 1.4240, 1.4185, 1.4100 and 1.4045.
Resistance levels: 1.4590, 1.4625, 1.4725, 1.4800 and 1.4860.
Sell on the market. Stop-Loss: 1.4430. Take-Profit: 1.4335, 1.4185, 1.4100 and 1.4045.
Buy Stop: 1.4450. Stop-Loss: 1.4370. Take-Profit: 1.4590, 1.4625, 1.4725, 1.4800 and 1.4860.
The price is at support level of 1.4380.
Indicators recommend to open for short positions.