The GBPUSD declined since yesterday’s session from 1.4817, to 1.4663 which is today’s major pivot point zone.
The pair has been in a steady deceleration mode for a long time now and more recently since the 24th of December 2015.
Probable Scenario
The recent rise of the GBPUSD and the latest stabilization of the price close to the 1.4722 level is a good indication that the pair has great chances of moving once again to the upside.
Should it be such a scenario, the price could aggressively rise to 1.4758, Fibonacci’s 61.8%, 1.4817, Fibonacci’s 100.0%, and 1.4909, Fibonacci’s 161.8%.
The Stochastic oscillator also validates that the pair could likely retrace upwards even though the price has almost already approached the 80 level.
Alternative Scenario
In contrast, in the event where the downside pressures resume and get more tensed, the pair could drop to 1.4663, provided that, at first, the price stabilizes below the 1.4696 area.
Today’s Major Announcements
- The PMI Construction (Dec) release is expected to have a medium impact on the sterling
- There are no any major announcements on the U.S. dollar
Synopsis
- Probable trend (Bullish):1.4722
- Bullish take profit targets:1.4758, 1.4817, 1.4909
- Stop loss target:1.4696
- Alternative trend (Bearish): 1.4696
Bearish take profit target:1.4663
