50.0-61.8% Correction Zone on GBP/USD

50.0-61.8% Correction Zone on GBP/USD

Last week, GBP/USD quotes recovered after a significant collapse in mid-March. The British pound has updated local highs. At the moment, the trading instrument is testing the 50.0-61.8% correction zone (H4 timeframe). In the short term, we do not exclude the development of bearish sentiment. Local levels of support and resistance are 1.2270 and 1.2470. We recommend paying attention to this situation.

If the price fixes below 1.2270, then GBP/USD sales should be considered. The nearest goal for profit-taking is the round level of 1.2100. The movement is tending to 1.1970-1.1900.

Alternative option. If the price fixes above the resistance of 1.2470, further correction of the GBP/USD currency pair is expected. The target level for profit-taking is in the range of 1.2640-1.2750.

Confirmations and market entry points should be looked for on lower timeframes. When following positions, we recommend using a trailing stop.

by JustForex 2020.04.01

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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