GBPUSD retests – Analysis - 12-01-2017

The GBPUSD pair approached from our main waited target at 1.1997 and rallied sharply to the upside in attempt to breach 1.2230 level but it returned to settle below it, as the EMA50 managed to form strong resistance barrier to protect the suggested negative scenario, which keeps the bearish trend valid until now, waiting to head towards the previously recorded low at 1.1997 as a next main target.

Stochastic approaches from the overbought areas to support the suggested decline, noting that breaching 1.2230 level will push the price for recovery attempts that its targets begin at 1.2339 and extend to 1.2550 after breaching the previous level.

Expected trading range for today is between 1.2060 support and 1.2300 resistance.

Expected trend for today: Bearish