GBPUSD: Correction over?

The GBPUSD continued its free-fall action after flirting with 50% Fibonacci retracement of the entire downside wave from 1.7188 to 1.4565 as seen on the provided weekly chart.

GBPUSD-WEEKLY-01-06-FXCOMMENT

Over daily studies, we have discussed the probability of forming an inverse head and shoulders pattern with targets at 1.60, but the pair failed to reach the upside targets after facing technical obstacles over weekly studies.

SMA50 has thwarted bulls, pushing the pair to the downside; particularly, after facing the classical resistance zones of 1.5825.

Meanwhile, AC, Stochastic and Vortex indicators have given off negative signs; accordingly, we see chances for achieving further debasement, but not before clearing 23.6% Fibonacci level at 1.5185.

Click here to see our latest fundamental comments on GBPUSD

Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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