From a daily technical point of view, RSI pivots around at its neutral 50 level, 50 SMA shows bullish and MACD appears to be bearish. As all the technical indicators and oscillators show mixed signals, we would stay away of this pair until we have a clear breakout either bearish below 1.5150 zone or bullish above 1.5500 psychological resistance zone. .
Two major scenarios occur from GBPUSD weekly technical outlook:
First – breaking of Fibonacci’s 23.6% @ 1.515 and aiming for Fibo 0% @ 1.495.
Second – breaking of Fibonacci’s 61.8% @ 1.547 and heading towards Fibo 100% @ 1.579.
For the first scenario to take place – breaking 1.525 could mean a start. The market would move towards Fibo 23.6% @ 1.515. If broken, the bears will run to Fibo 10% @ 1.503 and, lastly, to Fibo 0% @ 1.495. The scenario should be supported by both 50 and 200 SMA as they show down.
For the second scenario to take place – breaking previous week’s Pivot line at 1.529 would mean a good start for it. Next, Fibonacci’s 50% @ 1.537. When broken bull will run to the Fibo 61.8% with some possible resistance along the way from May’s Pivot line at 1.54. After a successful breaking there will be a clear path for bull to run to Fibo 88.6% @ 1.570. Finally, Fibonacci’s 100% @ 1.579 will be left.
At any point, after bouncing, the two scenarios can interchange. Furthermore, an eye should be kept on fundamentals and news about Brexit. For fundamental news that can affect the market check – 08/06 week fundamental outlook and trade set-ups.