goldtradingexpert

GGBP/USD is challenging its strong support zone. Will it bounce?

FX:GBPUSD   British Pound / U.S. Dollar
After breaking below the trendline support, what bit confirmed that the GBP/USD will test its significant support level , and it happens.

Now the question is will GBP/USD bounce from the strong support level?

We have seen gold and oil didn't respect any substantial resistance. EUR/USD is falling apart and not the following support as well. So, can GBP/USD respect the support zone and bounce?

From my view, GBP has 50/50 chances. As long as GBP/USD is above 1.3150, I believe that GBP/USD will bounce nearly 1.3350 zones. After that, if the Russia-Ukraine war turns into a more critical situation or if GBP/USD breaks below the 1.3150 zones, it has a big room to drop till 1.2800.

So, I suggest you put one sell limit order at 1.3350 or sell after a breakout at 1.3150. Our first target to the downside is 1.3000, and the final target is 1.2800.

Remember: as long as the Russia-Ukraine war exists, we should not buy GBP and EUR. As commodities prices rise, commodities currencies are rising like AUD, NZD, and CAD. Otherwise, they would also drop.

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