Last week, The price movement of the GBP price against the USD is closed at 1.32042 after decline from the highest price at 1.33102 on March 19th, 2019. The decline in prices is likely to be a correction of the previous uptrend (start 15 January). The correction began on March 13th, 2019 (A1) when the price touched the sell zone 1 (1.33413 to 1.33787). After reached the area (A), the GBPUSD price started slowly decline to the area (B1) with price fluctuations between (x-y) thus forming a sideway pattern in 5 days.
March 20th, 2019, after reaching the lower limit of the area (B1 1.31463), The GBPUSD price experienced rebound upward without the dominant buying volume. This caused the price tried to penetrate the lower limit of the B1 zone. Breaking of that zone led the GBPUSD to go straight to the Buy Zone 2 (1.30079 – 1.29716).
On March 21th, 2019, after reaching the upper limit of the Buy Zone 2 (1.30079), GBPUSD rebounded or rose again near the close of the USA market session. On Friday, the buying volume had started to be quite dominant, causing the GBPUSD price to continue rising up to the price of 1.3220 and then fall down to 1.32042 as the market closing price for the previous week.
Scenario 1.
GBPUSD still has the potential for an uptrend to test into the Sell zone 2. If the price breaks the upper limit of the selling zone 1 (1.34116), then the price will have a chance to reach Sell Zone 2 area (1.34340 -1.3840). Even if accompanied by strong buying volume, the price will have able to reach zone 3 (1.35090 - 1.35310)
Scenario 2.
If the price of the GBPUSD breaks the lower limit of Buy Zone 2 (1.29716) and accompanied by the strong selling volume, potentially it will continue to decline towards the Buy Zone 3 (1.280549 up to 1.27549)
March 20th, 2019, after reaching the lower limit of the area (B1 1.31463), The GBPUSD price experienced rebound upward without the dominant buying volume. This caused the price tried to penetrate the lower limit of the B1 zone. Breaking of that zone led the GBPUSD to go straight to the Buy Zone 2 (1.30079 – 1.29716).
On March 21th, 2019, after reaching the upper limit of the Buy Zone 2 (1.30079), GBPUSD rebounded or rose again near the close of the USA market session. On Friday, the buying volume had started to be quite dominant, causing the GBPUSD price to continue rising up to the price of 1.3220 and then fall down to 1.32042 as the market closing price for the previous week.
Scenario 1.
GBPUSD still has the potential for an uptrend to test into the Sell zone 2. If the price breaks the upper limit of the selling zone 1 (1.34116), then the price will have a chance to reach Sell Zone 2 area (1.34340 -1.3840). Even if accompanied by strong buying volume, the price will have able to reach zone 3 (1.35090 - 1.35310)
Scenario 2.
If the price of the GBPUSD breaks the lower limit of Buy Zone 2 (1.29716) and accompanied by the strong selling volume, potentially it will continue to decline towards the Buy Zone 3 (1.280549 up to 1.27549)