themarketzone
Long

Approaching 61.8 Fib level - Interesting buy zone

FX:GBPUSD   British Pound/U.S. Dollar
Unlike $EURUSD (see link below), $GBPUSD was extremely weak last week after being rejected by the 1.54-1.55 weekly resistance zone .
The Cable didn't even stop near 1.535 that should have acted as support with daily structure and its 200 SMA line (daily) and it continued lower, closing the week below 1.52.

Now, finally $GBPUSD starts to become interesting again, especially with the bullish potential I see in the rest of the majors (except USDCAD             and USDJPY             ) and the reversal potential in $DXY            

1.5 is a structure zone that should act as support. It is also a Figure level and psychological level. Psychological levels tend to act as reversal zone as they represent major supply/demand.
On top of the psychological level and the structure support , 1.5 is also the 61.8 Fib retracement level for previous swing high

1.5 is this week's potential buy zone.
The next buy zone, in case that $GBPUSD will decline lower, is 1.47, where Cable will complete a bullish Bat pattern.

In both of these cases, the 200 SMA line, which is now a resistance line, should be set as a target level. Only a close above the 200 SMA will signal potential longer term move.

Buying near 1.5 (if Cable will reach there of course), will allow about 1:2.5 R/R with 200-250 pips potential reward for 100 pips risk.

This analysis is part of the Weekly Markets Analysis newsletters
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Comment: Bat pattern completes towards 2016
MY KEY HOT ZONES ;)
snapshot
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moorekapital moorekapital
1.45000000-1.49300000
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I like the pattern, I'd be terrified of buying just based on that structure there.
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