The GBPUSD reached a major Fibonacci confluence zone determined by 127 inv of the major swing lower from July 2014 to April 2015 as well as 138 inv of the swing from January range at 1.385. If we see a retrace in this pair we most likely see it from such a major zone. Therefore I will be looking for a possible test of 1.40. However the GBPUSD is under serious bearish pressure so I will be looking for a reversal structure before considering a buy. Selling from these levels without any new fundamentals is very risky. I expect more downside pressure for the Pound but nothing moves in a straight line and this level might be the bottom for at least a short term retrace. The green channel and arrows show an indicative pattern of what I'm looking for.
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Trade closed: target reached:
First target @ 1.40 got hit.
Trade closed: target reached:
Second target got hit. Updates will follow.
