GBPUSD continues to fall after candles failed to close back above the 200 EMA on the daily chart. Paying attention to the Fibonacci Retracement, candles now lie near 38.2% where exhaustion may possible occur. However, given that candles now close below the 20 SMA, bearish momentum is bound to remain high and prices are likely to go even lower this week. Candles continue to remain highly bearish and the pair is expected to head for 1.5000 in the long term.
Observing the H4 chart, candles now lie within the downtrend channel and are expected to continue on the bearish run. Candles now lie near the bottom of the trend channel and seek to retrace before continuing on its bearish run. Additionally, bearish movements start to slow down upon nearing the 200 EMA and a retracement is highly likely to occur. However, given the strong bearish momentum of the pair, counter-trending is not advisable and traders should wait for opportunities to short the pair instead. Traders could possibly look out for candles to retrace back to the 55 EMA or even the upper trend channel.
Focusing on the hourly chart, bearish movements start to slow down with candles now drawing near Fibonacci Expansion 127.2% at 1.5345. Candles are likely to rebound soon but engaging in a longing position is not advisable.
|Bullish for today/ Retracement||1.5292||1.5345||1.5372||1.5445||1.5510||1.5585|