Technical Outlook and Chart Setups:

We have depicted the daily wave structure above. It is quite possible that C is in place at the 111.00 level, which is the 0.618 level of A (117.00) and B (97.50) levels. The new channel resistance is holding well and prices have broken down 110.50 levels as well. The last intermediary support level comes in around the 100.15 level. A bounce from there can still change the wave structure to bullish, but a break will then target below the 97.00 level as our D extension. As of now one can still remain short for one more day, though our expected downside targets have been met, bring down the stop loss risk to 102.00 now.

Tradign Recommendations:

Sell at 104.00/104.25, stop at 105.50, targets achieved at 100.50. Still holding short positions with stop at 102.00 now.

 Good Luck!

The material has been provided by Instaforex Company – instaforex.com

Breakdown of Price Zone 1.5960-1.5940 lead to quick decline towards 1.5860-1.5840 which was broken too leading to price zone 1.5740-1.5760.
Price Zone 1.5740 – 1.5760 corresponds to the lower limit of the Violet & Blue channels and also to the Average Daily Range which is indicative of possible bullish retracement coming after.
The GBP/USD has shown extensive bearish decline yesterday exceeding the Average Daily range breaking its Intraday Support levels. However, today there are signs of bullish recovery manifested in breaking the upper limit of the Yellow channel.
There’s a possible Head and shoulders being formed with head at 1.5730 which becomes confirmed with bullish closure above neck-line located at 1.5825 to be targeting to the price level of 1.5925.

Based on the previous analysis

The market offers a bullish opportunity at price level 1.5770 with a tight Stop Loss below 1.5730.

TP levels are to be located at 1.5810, 1.5885 and 1.5925.

If you like my articles, please vote for me in Analyst of the Year Contest by clicking here .

The material has been provided by Instaforex Company – instaforex.com

Breakdown of Price Zone 1.5960-1.5940 lead to quick decline towards 1.5860-1.5840 which was broken too leading to price zone 1.5740-1.5760.
Price Zone 1.5740 – 1.5760 corresponds to the lower limit of the Violet & Blue channels and also to the Average Daily Range which is indicative of possible bullish retracement coming after.
The GBP/USD has shown extensive bearish decline yesterday exceeding the Average Daily range breaking its Intraday Support levels. However, today there are signs of bullish recovery manifested in breaking the upper limit of the Yellow channel.
There’s a possible Head and shoulders being formed with head at 1.5730 which becomes confirmed with bullish closure above neck-line located at 1.5825 to be targeting to the price level of 1.5925.

Based on the previous analysis

The market offers a bullish opportunity at price level 1.5770 with a tight Stop Loss below 1.5730.

TP levels are to be located at 1.5810, 1.5885 and 1.5925.

If you like my articles, please vote for me in Analyst of the Year Contest by clicking here .

The material has been provided by Instaforex Company – instaforex.com