GBPUSD last week finished trading near the weekly lows. Price pulled back towards our target of the 38% Fibonacci retracement around 1.3670. This was our initial target after price broke out of the bullish channel and after breaking below 1.3745.
Red lines- bullish channel
Black lines- Fibonacci retracements
GBPUSD has reached the first important Fibonacci support level. Failure to hold above it will lead price to another move lower towards the 50% or even the 61.8% retracement level. Short-term trend remains bearish. Our most probable scenario is that price bounces at the start of the week but continues lower after forming a lower high. Breaking below 1.3670 will bring fast more sellers in the market.The material has been provided by InstaForex Company - www.instaforex.com