GBP/USD Weekly Prognosis

Strong than predicted rebound from 1.3503 and the break of 1.4469 hold turned resistance mixes up the short term prospect. As Well, it starts out out up the possibility that GBP/USD has indeed bottomed out after failing to sustain below 1.3680 key long term hold. At The Same Time, in any case, further rise is at the present instant in favor as long as 1.4071 minor maintain holds. Rally from 1.3503 could extend further towards 1.5722 resistance. On the downside, below 1.4071 will flip intraday bias back to the downside for retesting 1.3503 instead.

In the bigger picture, the failure to sustain below 1.3680 key long term hold and stronger than predicted rebound from there raises the possibility that fall from 2.0158 has already accomplished the five wave sequence (1.7445, 1.8668, 1.4557, 1.5722), with fifth wave terminated at 1.3503. This is indeed, slenderly in favor at the present instant considering bullish convergence conditions in daily MACD and RSI. Touching of 1.5722 will approve this case and bring larger scale correction before resuming the long term down trend from 2.1161. On the downside despite, firm break of 1.3503 will revive that case that medium term down trend is still in progress for 61.8% projection of 1.8668 to 1.4557 from 1.5722 at 1.3186 next.

In the longer term picture, as talked over before, the setting nature of the multi-decade advance from 1.0463 (85 low) to 2.1161 as well as the impulsive nature of the fall from there advises that GBP/USD is at present in an 1st stage of a long term down trend. While some medium term scale of integration might be found out in the near future, the long term down trend is predicted to resume after completing such integration.

Based on ActionForex.com Technical Prospect