GBP USD declines strongly – Analysis - 27/08/2015

The GBPUSD pair traded with strong negativity after breaking the minor bullish channel’s support, and we notice that the decline stopped at the bullish channel’s support that its signs appear on chart, which hints the possibility of regaining the main bullish trend, especially that stochastic shows clear oversold signals.

On the other hand, the EMA50 forms negative pressure on the intraday and short term trading, therefore, we prefer staying aside temporarily in order to monitor the price behavior according to the key levels represented by 1.5405 support and 1.5605 resistance, as breaking the mentioned support will extend the bearish wave to target 1.5245 level as a next station, while breaching the resistance will allow the price to return to the main bullish trend, which its first target located at 1.5930.

Expected trading range for today is between 1.5400 support and 1.5650 resistance.

Expected trend for today: Neutral